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Problem 6-3 CAPM (Show formula) Suppose the risk-free rate is 4% and the market risk premium is 8%. What is the required rate of return
Problem 6-3 CAPM |
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Suppose the risk-free rate is 4% and the market risk premium is 8%. | ||||
What is the required rate of return on (1) the market, (2) a stock with a beta of .8, and (3) a stock with a beta of 1.8? | ||||
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