Question
a). As part of your inheritance, you will receive $50,000 a year for 20 years. The first payment will be received 5 years from today.
a). As part of your inheritance, you will receive $50,000 a year for 20 years. The first payment will be received 5 years from today. What is the present value of this inheritance if you use a 5% discount rate?
b). If the interest rate on T Bills is 3% and the market risk premium is 7%, what is the CAPM-implied expected return on a stock with a beta of 1.3?
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Finance
Authors: Ehsan Nikbakht, A A Groppelli
6th Edition
0764147595, 9780764147593
