Question
Stock A has a beta of .4, and investors expect it to return 8%. Stock B has a beta of 1.6, and investors expect it
Stock A has a beta of .4, and investors expect it to return 8%. Stock B has a beta of 1.6, and investors expect it to return 14%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Do not round intermediate calculations. Enter your answers as a whole percent.) Market risk premium % Expected market rate of return %
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
9th Edition
0814408648, 978-0814408643
