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Company has a beta of 325 and a standard deviation of

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Company has a beta of 3.25 and a standard deviation of returns of 27%. The return on the market portfolio is 13% and the risk free rate is 5%. What is the risk premium on the market? According to CAPM, what is the required rate of return on stock?

Please Show work! Ans 42.25%, 40.00%, 31.00%, 29.25%

Reference no: EM13486176

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