You have the following information about the returns for the securities of Super Lux plc and the

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You have the following information about the returns for the securities of Super Lux plc and the returns for the market:

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Given that the rate of return on Treasury bills is 8 per cent and that the correlation coefficient between the security and the market is +0.83, calculate the required rate of return on Super Lux’s shares using the CAPM.

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Corporate Finance Principles And Practice

ISBN: 9780273725343

5th Edition

Authors: Denzil Watson, Antony Head

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Question Posted: Jun 05, 2024 08:02 AM

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You have the following information about the returns for the securities of Super Lux plc and the

Question:

Time Return of Super Lux (%) Return of the market (%) 18 10 t 13 tA 21 11 ts 20 25 26 8 12 14

Step by Step Answer:

Corporate Finance Principles And Practice

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