You are given the following data for risk-free return (RF) and expected market return (RM) along with

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● You are given the following data for risk-free return (RF) and expected market return (RM) along with the risk involved in respect of a number of projects:

Project RF (%) RM (%)

E 7.5 13 0.96 F 9.0 16 1.00 G 10.0 20 1.75 What is the required Rate of Return on equity in each project under Capital Asset Pricing Model

(CAPM)? What generalisations can you make?

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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