Question
Suppose a firm has a beta of 1.25, the risk-free yield on long-term government securities is 4.0%, and the market-risk premium is 6.0%. The expected
Suppose a firm has a beta of 1.25, the risk-free yield on long-term government securities is 4.0%, and the market-risk premium is 6.0%. The expected return under the CAPM is
a. 6.0%.
b. 7.5%.
c. 11.5%.
d. 4.0%.
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
6th Edition
78025532, 978-0077523732, 77523733, 978-0078025532
