10.36 The following data have been developed for the Durham Company. Variance of market returns 0.04326...
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10.36 The following data have been developed for the Durham Company.
Variance of market returns 0.04326 Covariance of the returns on Durham and the market 0.0635 Suppose the market risk premium is 9.4 percent and the expected return on Treasury bills is 4.9 percent.
a. Write the equation of the security market line.
b. What is the required return of Durham Company?
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Related Book For 
Corporate Finance
ISBN: 9780071229036
6th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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