Derive the risk premium on common stock
JPM Corporation common stock has a beta of 1.2. The risk-free rate is 6%, and the market return is 11%.
a) Derive the risk premium on JPM common stock.
b) Determine JPM's cost of common equity using the CAPM.
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JPM Corporation common stock has a beta of 1.2. The risk-free rate is 6%, and the market return is 11%. Derive the risk premium on JPM common stock.
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