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Find the risk premium on market assuming capm is true

The expected return on KarolCo. stock is 16.5 percent. If the risk-free rate is 5 percent and the beta of KarolCo is 2.3, then what is the risk premium on the market assuming CAPM is true? Using this information, what is the rate of return on the market?

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Finance Basics: Find the risk premium on market assuming capm is true

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find the risk premium on market assuming capm is true

Reference No:- TGS0674164

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Find dollar range of returns that can have with confidence

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Q : Importance of creating a command center

Q : Find the risk premium on market assuming capm is true

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find the risk premium on market assuming capm is true

Reference No:- TGS0674164

Recent Questions Asked Finance Basics

Q : Find dollar range of returns that can have with confidence

Q : Govenrnment related question

Q : Prepare the direct materials budgets by quarters

Q : Importance of creating a command center

Q : Find the risk premium on market assuming capm is true

Q : Determine how much you will have saved after 10 years

Q : What is the value of the preferred stock

Q : Explain the bulldozer cost

Q : What is the market interest rate implied

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