Question
Companys beta is 1,2 and it has 10 mio shares outstanding. Net profit last year was 18 mio USD. S&P500 last year return was approximately
Company’s beta is 1,2 and it has 10 mio shares outstanding. Net profit last year was 18 mio USD. S&P500 last year return was approximately 14,2% and its volatility about 22%.
T-bill return was 0,5%. Calculate expected return for company stock with CAPM.
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Modeling the Dynamics of Life Calculus and Probability for Life Scientists
Authors: Frederick R. Adler
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