What is the expected return on an asset when the risk-free rate is 2%, the market risk premium is 5% and the beta of the asset to systemic risk is 1.4?

Select one:

9.50%

9.00%

7.00%

7.80%

Clear my choice

Question 13

Question text

What is the present value of a perpetuity of $50,000 received at the end of each year when the interest rate is 4% per annum?

Select one:

$1,250,000

$376,105

$787,316

$1,500,000