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can you show me how to do this in excel, exaclty. new to this P8-27 Grace Corporation is considering the following investments. The current rate

can you show me how to do this in excel, exaclty. new to this
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P8-27 Grace Corporation is considering the following investments. The current rate on Treasury bills is 2.5% and the expected return for the market is 9% a. Using CAPM, what rates of return should Grace require for each Individual security? b. How would your evaluation of the expected rates of return for Grace change if the risk-free rate were to rise to 4.5% and the market risk premium were to be only 5%? c. Which market risk premium scenario (from part a or b) better fits a recessionary environment? A period of economic expansion? Explain your response. Hint: For Part b see page 240 for market risk premium defintion 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 G OD B Risk Free Rate Market Rate Beta 1.12 1.3 0.75 1.02 Expected Return (CAPM) K G B U b. Risk Free Rate Market Risk Premium Beta 27 28 29 1.12 13 0.75 1.02 30 Expected Return (CAPM) C. 31 32 33 34 35 36 37 38 39

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