Question
Your estimate of the Market Risk Premium is 7.00%. The Risk-Free Rate of return is 4.00% and General Motors has a Beta of 1.40
Your estimate of the Market Risk Premium is 7.00%. The Risk-Free Rate of return is 4.00% and General Motors has a Beta of 1.40 and a Standard Deviation of 15.20%. What is General Motors' Cost of Equity based on CAPM/SML?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
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