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What is the risk premium on the market

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Reference no: EM133049975

Question - The Treasury bill rate is 4.5%, and the expected return on the market portfolio is 10.9% the capital asset pricing model.

a. What is the risk premium on the market?

b. What is the required return on an investment with a beta of 1.2?

c. If an investment with a beta of 0.26 offers an expected return of 8.5%, does it have a positive NPV?

e. If the market expects a return of 10.8% from stock X, what is its beta?

Reference no: EM133049975

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