14. APT (S8.4) Consider the following simplified APT model: Factor Expected Risk Premium (%) Market 6.4 Interest
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14. APT (S8.4) Consider the following simplified APT model:
Factor Expected Risk Premium (%)
Market 6.4 Interest rate −0.6 Yield spread 5.1 Calculate the expected return for the following stocks. Assume rf = 5%.
Chapter 8 The Capital Asset Pricing Model 245
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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