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1. Explain WHY the expected return depends only on systematic risk and does not include unsystematic risk). 2. Explain why we are using 5.25% as
1. Explain WHY the expected return depends only on systematic risk and does not include unsystematic risk).
2. Explain why we are using 5.25% as the MRP and where this the estimate comes from.
3. Explain why we use the current yields on longer-term Treasury bonds as the risk-free rate instead of historical returns on short-term Treasury bonds.
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Be Audit You Can Be
Authors: Awesome Auditor
1st Edition
1659095700, 978-1659095708
