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3. Asset A has the following future cash flows. If asset B has identical risk as with A and the expected return for B is
3. Asset A has the following future cash flows. If asset B has identical risk as with A and the expected return for B is 15%. Asset c' expected return is 20%. Risk-free interest rate is 5%. T CF 1 1000 2 2000 3 3000 4 4000 %. The expected return for A is The risk premium for A is %. The present value of these cash flows (asset A) is 1. 06641 2.0 8649 3.0 5887 4.0 7548
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