Determining the risk premium on the market, Finance Basics

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Determining the risk premium on the market

The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Using the capital asset pricing model:

b. What is the risk premium on the market?

c. What is the required return on an investment with a beta of 1.5?

d. If an investment with a beta of .8 offers an expected return of 9.8%, does it have a positive NPV?

e. If the market expects a return of 11.2% from stock X, what is its beta?

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Finance Basics: Determining the risk premium on the market

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Recent Questions Asked Finance Basics

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Finance Basics: Determining the risk premium on the market

Reference No:- TGS042599

Recent Questions Asked Finance Basics

Q : Identify three types of competition that firms encounter

Q : Value of a put option with exercise price

Q : Internal control policies and procedures

Q : How much profits would increase or decrease

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