The following data have been developed for the Durham Company. Suppose the market risk premium is 9.4

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The following data have been developed for the Durham Company.

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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Corporate Finance With Powerweb

ISBN: 9780072503630

6th Edition

Authors: Stephen A. Ross

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Question Posted: May 27, 2024 02:10 AM

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The following data have been developed for the Durham Company. Suppose the market risk premium is 9.4

Question:

Variance of market returns = 0.04326 Covariance of the returns on Durham and the market = 0.0635

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Corporate Finance With Powerweb

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