Question
The expected return on stock A is 11.00 percent. The expected return on stock B is 8.00 percent. Assuming CAPM holds, if the beta of
The expected return on stock A is 11.00 percent. The expected return on stock B is 8.00 percent. Assuming CAPM holds, if the beta of stock A is higher than the beta of stock B by 0.10, what should the risk premium be? (Round answer to 2 decimal places, e.g. 2.36%.)
| Risk premium |
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International Macroeconomics In The Wake Of The Global Financial Crisis Financial And Monetary Policy Studies
Authors: Laurent Ferrara, Ignacio Hernando, Daniela Marconi
2018th Edition
3319790749, 978-3319790749
