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Consider the following scenario: Your expected return from a stock is 10%, expected market return is 8.5% and the risk-free rate is 1.5%. a- What's
Consider the following scenario: Your expected return from a stock is 10%, expected market return is 8.5% and the risk-free rate is 1.5%.
a- What's the expected risk premium of this stock? Answer in percent (e.g. 5.5% = 5.5)
b- What's the expected market risk premium? Answer in percent (e.g. 5.5% = 5.5)
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