Question
Suppose that a company's expected return is 12.3% and it has a beta of 1.1. The market portfolio return is 11% and the risk-free
Suppose that a company's expected return is 12.3% and it has a beta of 1.1. The market portfolio return is 11% and the risk-free rate is 3%. Company Return 12.3% Beta Market Return T-Bill Yield 1.1 11% 3% What is the company's excess return and company's risk premium? The company's excess return is % while the risk premium is %. Round your answers to the nearest two decimal places.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
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