U SEPUU.LUITI The risk-free rate is 4.69% and the expected return on the market 11.63%. A...

Question

Question

Answer 1

Answer #1

3]

expected return = risk free rate + (beta * (expected market return - risk free rate))

expected return = 4.69% + (1.35 * (11.63% - 4.69%))

expected return = 14.06%

4]

expected return = risk free rate + (beta * market risk premium)

18% = 1.91%+ (beta * 9.37%)

beta = 1.72

Answer 2

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