Question
You have $10,000 and you want to know if company,LLC is a good buy. The firms total risk is 15%, its systematic risk is 0.5,
You have $10,000 and you want to know if company,LLC is a good buy. The firms total risk is 15%, its systematic risk is 0.5, the t-bill rate is 1.9%, the 30 year treasury rate is 3.5%, and the average market return is 9.2%. According to the CAPM, what is the expected return on company, LLC?
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
