Calculate the risk-free rate and the risk premium

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According to the capital asset pricing model (CAPM) the required return on shares in ABC Corporation is 10.6%. The beta value associated with these shares is 1.1 and the expected return on the market portfolio is 8 %. Calculate the risk-free rate and the risk premium for these shares. Please solve it in full formula and explain detail

Reference no: EM132867795

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