What is the market risk premium using the capm


Problem 1: The expected return of shares in a company is 10% per annum and its beta coefficient is 0.5. The risk free return prevailing in the market is 5% per annum. Using the CAPM, what is the market risk premium? Give your answer as a percentage per annum to the nearest percent.

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Financial Accounting: What is the market risk premium using the capm
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