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Calculating the market risk premium

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In an efficient market, shares in the wine exporting company A are traded. According to your statistical analysis, the stock has an expected return of 13.33% and a covariance with the market portfolio of 755.04. The market portfolio in turn has a standard deviation of 22.00% and the risk-free interest rate is 2.02%. Assume that CAPM keeps calculating the market risk premium. Round your answer to 2 decimal places e.g. if your answer is 3.2516 then answer 3.25.

Reference no: EM133078681

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