Question
Consider the data for Auroras Educational Services, Inc. Currently the firms Beta is 2.00 and the standard deviation for the firms monthly returns is 12.5%.
Consider the data for Auroras Educational Services, Inc. Currently the firms Beta is 2.00 and the standard deviation for the firms monthly returns is 12.5%. The Expected Return on the market is 10% and Treasury Bill rate is 4.00%.
Using the data above, compute the expected return for Aurora then compute the Market Risk premium.
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The Company Valuation Playbook Invest With Confidence
Authors: Charles Sunnucks
1st Edition
1838470816, 978-1838470814
