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The following information relates to questions 16 to 20. After recalculating beta factor, a security analyst finds that the expected return of ASSEMBLE Ltd would

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The following information relates to questions 16 to 20. After recalculating beta factor, a security analyst finds that the expected return of ASSEMBLE Ltd would be 19% using its new beta factor of 1.40 in Capital Asset Pricing Model (CAPM). The analyst used 15% market expected return and 5% risk free rate. Question 16 2 pts Calculate the security risk premium for ASSEMBLE Ltd. Calculate the market risk premium? What risk is measured by beta? Explain your answer. What does a beta of 1.40 inform shareholders about the risk of ASSEMBLE Ltd? Explain your answer. Find the risk-free rate of return, market risk premium and security risk premium in percentage return from the following 'security market line (SML)' diagram

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