Assume that the risk-free rate rf is currently 6 and that


Assume that the? risk-free rate, Rf, is currently 6?% and that the market? return,rm?, is currently 11?%.

a. Calculate the market riskpremium.

b. Given the previous? data, calculate the required return on asset A having a beta of 0.4and asset B having a beta of 1.1.

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Financial Management: Assume that the risk-free rate rf is currently 6 and that
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