Question
You have the following assets available to you: Asset Expected Return Riskless debt 2.3% Portfolio of small cap stocks 9% Portfolio of large cap stocks
You have the following assets available to you:
| Asset | Expected Return |
| Riskless debt | 2.3% |
| Portfolio of small cap stocks | 9% |
| Portfolio of large cap stocks | 7.5% |
| Portfolio of growth stocks | 13.8% |
| Portfolio of value stocks | 7.3% |
| S&P500 index fund | 9.1% |
What is the cost of equity for a firm with a market beta of 1.5, a SMB beta of 0.7, and a HML beta of 0.7? You may assume this firm has an alpha of zero. Please give your answers to four decimal places - an answer of 9.54% would be represented as 0.0954.
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Fanatical Prospecting The Ultimate Guide To Opening Sales Conversations And Filling The Pipeline By Leveraging Social Selling Telephone Email Text And Cold Calling
Authors: Jeb Blount, Mike Weinberg
1st Edition
1119144752, 978-1119144755
