The elvis alive corporation, makers of elvis memorabilia, has a beta of 2.35. the return on themarket portfolio is 12%, and the risk-free rate is 2.5%. according to capm, what is the riskpremium on a stock with a beta of 1.0?
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Ответ:
Risk-free rate (Rf) = 2.5%
Market return (Rm) = 12%
Beta (β) = 1.0
Risk-premium = Market return - Risk-free rate
= 12 - 2.5
= 9.5%
Explanation:
Risk-premium is the difference between market return and risk-free rate.
Ответ: