If investors anticipate a 7.0% risk-free rate, the market risk premium = 5.0%, beta = 1,...
If investors anticipate a 7.0% risk-free rate, the market risk premium = 5.0%, beta = 1, Find the return.
Homework Answers
Expected rate=risk free rate+Beta*market risk premium
=7+(5*1)
which is equal to
=12%
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