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Assume that Expected return of Growing Share in David's portfolio is 12%, the risk premium on the stocks of the same industry is 5.6%, the
Assume that Expected return of Growing Share in David's portfolio is 12%, the risk premium on the stocks of the same industry is 5.6%, the beta of this share is 1.2 and the inflation rate was 1.2 %. Calculate risk free rate which is used to calculate expected return of this share, using Capital Asset Pricing Model
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
4th Edition
1439078084, 978-1439078082
