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IL (CAPM) The risk-fre The risk-free rate of return is 2.6% and the stock's beta coefficient is 2.1. If the market risk premium is 9.0%,
IL (CAPM) The risk-fre The risk-free rate of return is 2.6% and the stock's beta coefficient is 2.1. If the market risk premium is 9.0%, what is the required return of stock? CAPM) The stock is appropriately priced and its expected annual return is 10.4%. The annual roturn on the 30-year Treasury is 3.5%, and the expected annual return on S&P 500 is 13%. What is the stock's beta coefficient? 12. (CAPM) The stock is appropriately priced and its expected annual return is 14.1%. The annual return on the 30-year Treasury is 2.5%, and the expected annual return on S&P 500 is 12%. What is the stock's beta coefficient? 13. (SML) A stock is appropriately priced at $40 per share. At this price, the required return is 15% and its beta coefficient is 1.2. At this same point in time, the return on the 20-year Treasury is expected to 3%. What is the market risk premium? What should happen to the risk-free rate of return, asset coefficient, and required return on the stock if the market risk premium increases to 12% from an increase in perceived market risk? 1 odobi 140/ and
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