You have just computed the beta of a stock to be 25 and the


You have just computed the Beta of a stock to be 2.5 and the estimate of the relevant risk-free rate is 5%. The expected market return next period is 12% and your estimate of Ke is 23%. What is the appropriate long-run market risk premium? a. 7.0% b. 7.2% c. 7.5% d. 8.0% e. 9.0%

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You have just computed the beta of a stock to be 25 and the
Reference No:- TGS01227937

Expected delivery within 24 Hours