Question
********ASAP PLEASE******** ******The expected return of stock 1 is 16.32%. The expected return of stock 2 is 10.68%. The beta of stock 1 is higher
********ASAP PLEASE********
******The expected return of stock 1 is 16.32%.
The expected return of stock 2 is 10.68%.
The beta of stock 1 is higher than the beta of stock 2 by 0.67.
If the Capital Asset Pricing Model holds, what is the expected market risk premium?
| A. | 7.48% | |
| B. | 6.84% | |
| C. | 9.85% | |
| D. | 8.42% |
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Quantitative Trading
Authors: Ernest P. Chan
2nd Edition
1119800064, 978-1119800064
