Coca Cola has a beta of 0.80. If the market risk premium is 5.08% and the risk-free rate is 2.30%, what is the fair return according to CAPM? (Answer as a percent. Enter only numbers and decimals in your response.)
Fair return=risk free rate+Beta*market risk premium
=2.3+(0.8*5.08)
which is equal to
=6.364
Coca Cola has a beta of 0.80. If the market risk premium is 5.08% and the...
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