Question
The Treasury bill rate is 5.3%, and the expected return on the market portfolio is 11.3%. Use the CAPM: What is the risk premium on
The Treasury bill rate is 5.3%, and the expected return on the market portfolio is 11.3%. Use the CAPM: What is the risk premium on the market? Note: Enter your answer as a percent rounded to 1 decimal place. What is the required return on an investment with a beta of 1.4? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. If an investment with a beta of 0.66 offers an expected return of 8.9%, does it have a positive NPV? If the market expects a return of 13.2% from stock X, what is its beta? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
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