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Hotel Review - Ame... University UI JUULI Check into a hotel. Paraphrasing Tool -... 5 pts Question 17 Porter Incs stock has

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Answer #1

Based on CAPM,

Expected return on security = Risk free rate + Beta * market risk premium

12.25% = 1% + 1.5 * market risk premium

11.25% = 1.5 * Market risk premium

Market risk premium = 7.50%

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