Question
The Market Risk Premium used in the CAPM model is derived from: A the historical return on the firm's stock minus the current risk-free rate.
The Market Risk Premium used in the CAPM model is derived from:
A the historical return on the firm's stock minus the current risk-free rate.
B the historical return on the market (S&P 500) minus the current risk-free rate
C beta times the historical return on the firm's stock
D beta times the risk-free rate
E the historical return on the market (S&P 500) minus the historical return on US Treasury debt
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ANSWER IS The correct answer is B the historical return on t...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
8th Edition
1285190904, 978-1305176348, 1305176340, 978-1285190907
