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Please show work by hand or financial calc. NO EXCEL PLEASE suppose you think that XYZ stock is fairly priced at $72 per share. At

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Please show work by hand or financial calc.

NO EXCEL PLEASE

suppose you think that XYZ stock is fairly priced at $72 per share. At that price you expect it will yield a 14% annual return. Also, you observe the stock's beta is 1.6 and Treasury Bills are yielding 3%, what's the Market Risk Premium? 31, Answer: 6.8750%

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