Question
Suppose you are given the following information: ABC Corporation: Expected Return = 10.18%, Beta = 1.06 XYZ Corporation: Expected Return = 12.69%, Beta = 1.41
Suppose you are given the following information:
ABC Corporation: Expected Return = 10.18%, Beta = 1.06
XYZ Corporation: Expected Return = 12.69%, Beta = 1.41
Assume that both assets are priced correctly according to CAPM. Calculate the following:
Risk-free Rate =%
Market Risk Premium =%
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
