Question
You have $10,000 and you want to know if abc,LLC is a good buy. The firms total risk is 15%, its systematic risk is 1.2,
You have $10,000 and you want to know if abc,LLC is a good buy. The firms total risk is 15%, its systematic risk is 1.2, the t-bill rate is 2.2%, the 30 year treasury rate is 3.5%, and the average market return is 7.4%. According to the CAPM, what is the expected return on abc, LLC?
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
