The interest rate on short-term U.S. government bonds is 4 percent. The risk premium for any asset
Question:
The interest rate on short-term U.S. government bonds is 4 percent.
The risk premium for any asset with a beta = 1.0 is 6 percent.
What is the average expected rate of return on the market portfolio?
a. 0 percent
b. 4 percent
c. 6 percent
d. 10 percent
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The Capital Asset Pricing Model CAPM can be used to estimate the expected return on an asset based ...View the full answer
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Related Book For 
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
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