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From the CAPM the expected return of Electronics Inc. is 8%. An estimate of the expected return of the market is 11%. If the beta

From the CAPM the expected return of Electronics Inc. is 8%. An estimate of the expected return of the market is 11%. If the beta of Electronic's is 0.50, which of the following comes closest to the risk free rate?

5%

2.5%

0%

1.5%

4.25%

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Question

From the CAPM the expected return of Electronics Inc. is 8%. An estimate of the expected return of the market is 11%. If the beta

From the CAPM the expected return of Electronics Inc. is 8%. An estimate of the expected return of the market is 11%. If the beta of Electronic's is 0.50, which of the following comes closest to the risk free rate? 5% 2.5% 0% 1.5% 4.25%

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Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

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Recommended Textbook for

Intermediate Accounting

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From the CAPM the expected return of Electronics Inc. is 8%. An estimate of the expected return of the market is 11%. If the beta of Electronic's is 0.50, which of the following comes closest to the risk free rate?

5%

2.5%

0%

1.5%

4.25%