Market require earn risk premium-corporate risk premium

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The stock return has a yearly standard deviation of 9%; that of the market is 17.7%. The shareholders 7.52% return on their investments in the company as an opportunity cost. The T-bill is expected to 5%, and the S&P500 Index promises 12% market return for the investors. How much is the market require earn risk premium and the corporate risk premium? Determine the correlation coefficient between the stock and the market index.

Reference no: EM131835061

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