Question
Netflix, Inc. has a beta of 4.06. If the market return is expected to be 13.30 percent and the risk-free rate is 6.60 percent, what
Netflix, Inc. has a beta of 4.06. If the market return is expected to be 13.30 percent and the risk-free rate is 6.60 percent, what is Netflix's risk premium? (Round your answer to 2 decimal places.)
Step by Step Solution
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Step: 1
To calculate Netflixs risk premium well use the Capital Asset Pricing Model CAPM formul...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
