You are trying to figure out the risk-free rate estimate. Here is information about a stock's CAPM return: The beta is 0.9 The market risk premium is 5.2% The stock's return is 10% Given this information, what is the estimate for the risk-free rate? Answer:
You are trying to figure out the risk-free rate estimate. Here is information about a stock's CAPM return: The beta is 0.9 The market risk premium is 5.2% The stock's return is 10% Given this information, what is the estimate for the risk-free rate? Answer:
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 14PROB
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Question
You are trying to figure out the risk-free rate estimate. Here is information about a stock's
The beta is 0.9
The market risk premium is 5.2%
The stock's return is 10%
Given this information, what is the estimate for the risk-free rate?
Answer:
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