Determine an appropriate market risk premium


Assignment

Find an estimate of Beta for attached Turnstar holdings company. You might consider examining /using an industry average Beta, especially if the reported Beta you find seems unrelalistic or inappropriate. (Probably check your Beta across a few different sources, because at times they vary.

Find the current interest rate (yield )for 3 months Treasury bills. Determine an appropriate market risk premium. Be sure to consider the size of Turnstar when estimating an appropriate premium.

After making your calculations,

* Using all this information, what is the expected return for Turnstar using CAPM?

*Estimate required rate of return using the dividend discount model , How does your CAPM number compare?

Write 1 page summary of findings , including any calculations you might have made

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Microeconomics: Determine an appropriate market risk premium
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