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The expected return for RE Ltd. stock calculated using the CAPM is 6.0%. The risk-free rate is 1.25% and the beta of the stock
The expected return for RE Ltd. stock calculated using the CAPM is 6.0%. The risk-free rate is 1.25% and the beta of the stock is 0.9. Calculate the implied market risk premium. apm 6.0 rusk free rate 1.25 beta 0.9 implied market re = rfr+beta*mrket risk 6% = 6% +(0.9*rpm) %3D %3D
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
