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please write the steps. Problem 1 (20 points) Junior & Co. Company has a beta of 1.1. The Treasury bill rate is 3%. The expected
please write the steps.
Problem 1 (20 points) Junior & Co. Company has a beta of 1.1. The Treasury bill rate is 3%. The expected market return is 11%. a. Explain why the Treasury bill rate could be considered a risk-free rate. b. Calculate the expected return of Junior & Co. Calculate the market risk premium. c. Problem 2 (20 points) You buy a share today for 300 KD. The shares pays no dividend. One year from today, you were able to sell your share for 350 KD. Find the money return and the rate of the return of this shareStep by Step Solution
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