Your estimates as of January 2050 are summarized as follows: Mean, annualized Estimation period Risk-free rate Market
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Question:
Your estimates as of January 2050 are summarized as follows:
Mean, annualized | |||
Estimation period | Risk-free rate | Market risk premium | |
Oct 2049-Dec 2049 | 0.05 | 0.00 | |
Jan 2020-Dec 2049 | 0.07 | 0.06 | |
Answer questions below.
- Determine the risk-free rate and the market risk premium that are appropriate to use for the CAPM equation. Provide a rationale for your choice.
Related Book For
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
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