Question
Suppose Biogen stock has a beta of 0.6. Assume a risk-free interest rate of 2.5% and a market risk premium of 5.5%. What is
Suppose Biogen stock has a beta of 0.6. Assume a risk-free interest rate of 2.5% and a market risk premium of 5.5%. What is the expected return of Biogen stock based on the Capital Asset Pricing Model (CAPM)?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
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