Homework Answers
=risk free rate+b1*Market Risk Premium+b2*Interest Rate Premium+b3*Yield Spread Premium
1.
=3.4%+1.2*6%-1.2*(-0.8%)-0.4*4.6%
=9.72%
2.
=3.4%+1.2*6%+0*(-0.8%)+0.3*4.6%
=11.98%
3.
=3.4%+0.3*6%+2.1*(-0.8%)+0.4*4.6%
=5.36%
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