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a BAIRAQ Company has a beta of 1.1. The risk-free rate is equal to 3% and the expected market return is equal to 10%. 1.
a BAIRAQ Company has a beta of 1.1. The risk-free rate is equal to 3% and the expected market return is equal to 10%. 1. A beta of 1.1 means that: The rate of return is at most 1.1% The stock is more volatile than the overall market The stock is less volatile than the overall market. The rate of return is equal to 11%. 2. Calculate the market risk premium. The market risk premium is equal to %. 3. Calculate the share risk premium. The share risk premium is equal to %. 4. Using CAPM, calculate the expected rate of return of BAIRAQ. The expected rate of return is equal to %. Give your reasons
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