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The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Use the capital asset pricing mode
Posted: Wed Jul 06, 2022 6:44 pm
by answerhappygod
- The Treasury Bill Rate Is 4 And The Expected Return On The Market Portfolio Is 12 Use The Capital Asset Pricing Mode 1 (61.59 KiB) Viewed 13 times
The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Use 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 0.8 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? (Round your answer to 1 decimal place.)