Homework Answers
Ans 16.59%
Risk Premium = Asset or Investment Return - Risk Free Return
= 19.69% - 3.10%
= 16.59%
| Asset Return = | Risk free Return + (Market Return - Risk free return)* Beta |
| Asset Return = | 3.1% + (7.3% - 3.1%) * 3.95 |
| Asset Return = | 19.69% |
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