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The risk-free rate is currently 4.80%. In addition, you have the following information: A) Assume that Microsoft (MSFT) is correctly priced and that its expected
The risk-free rate is currently 4.80%. In addition, you have the following information: A) Assume that Microsoft (MSFT) is correctly priced and that its expected return reflects the best information available to investors. What does this tell you about the market risk premium that investors seem to be expecting for the coming 12 months? The market risk premium is % B) What beta for Orange LLC would make investor expectations consistent with your findings in part A)? C) Given the market risk premium in A), what is the correct expected return for Alpine Tanning
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