The risk premium for exposure to the consumer price index


The risk premium for exposure to exchange rates is 5%, and the firm has a beta relative to exchange rates of .4. The risk premium for exposure to the consumer price index is -6%, and the firm has a beta relative to the CPI of .8.

If the risk-free rate is 3%, what is the expected return on this stock?

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Financial Management: The risk premium for exposure to the consumer price index
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