Question
Using the CAPM, determine the appropriaterequired rate of return at which to discount your AMGENs cash flows (AMGN). For the risk-free rate, use the current
Using the CAPM, determine the appropriaterequired rate of return at which to discount your AMGENs cash flows (AMGN). For the risk-free rate, use the current 10-year T-Note yield. For the market risk premium, you can use the average excess return reported elow. Alternatively, you can use the average country risk premium or the forward-looking (implied) risk premium from Bloomberg.
| T-bills | T-bonds | Stocks | |
| Average | 3.4% | 6.0% | 11.77% |
| Risk Premuim | NA | 2.53 | 8.3 |
| Standard Deviation | 3.13 | 10.02 | 20.28 |
| Max | 14.71 | 40.36 | 57.53 |
| Min | -0.02 | -14.90 | -44.04 |
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Gold And Debt An American Hand Book Of Finance With Over Eighty Tables And Diagrams Illustrative Of The Following Subjects The Dollar And Other Units Paper Money In The United States And Europe Gold And Silver In The United States And Europe
Authors: Fawcett William Lyman
1st Edition
1313124508, 9781313124508
