Question
QUESTION 31 If you know that the risk-free rate is 4.4% and the expected market risk premium is 5.3%, what would be the expected return
QUESTION 31
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If you know that the risk-free rate is 4.4% and the expected market risk premium is 5.3%, what would be the expected return of a stock with a beta of 1.7 using CAPM? (Answer to the nearest tenth of a percent, but do not use a percent sign).
QUESTION 32
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Suppose you are trying to estimate the cost of equity for a firm as part of the calculation of the Weighted Average Cost of Capital (WACC). If the risk-free rate is 4.5%, the expected market risk premium is 5.8%, and the beta is 1.8 for this firm's equity, what would be the expected cost of equity for this firm using CAPM? (Answer to the nearest tenth of a percent, but do not use a percent sign)
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Introduction To Financial Models For Management And Planning
Authors: James R Morris, John P Daley
2nd Edition
1498765041, 9781498765046
