Question
1) The expected return for XYZ stock calculated using the CAPM is 13% and its beta is 1.5. The return on the market portfolio is
1) The expected return for XYZ stock calculated using the CAPM is 13% and its beta is 1.5. The return on the market portfolio is 10%. Calculate the risk free rate Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format (EX: .XXXX) .
2) The expected return for PQU stock calculated using the CAPM is 12%. The risk free rate is 5% and the beta of the stock is 1. Calculate the market risk premium. Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format (EX:.XXXX)
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The Handbook Of Post Crisis Financial Modelling
Authors: Emmanuel Haven, Philip Molyneux, John Wilson, Sergei Fedotov, Meryem Duygun
1st Edition
1137494484, 978-1137494481
