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Estimate of next year risk premium for guide mining

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Reference no: EM132810277

Problem 1: An analyst covering Guide Mining common stock estimates the following information for next year. Expected return on market portfolio is 12%. Expected return on Treasury Securities is 5%. Expected beta of Guide Mining is 2.2. Using the CAPM, the analyst's estimate of next year's risk premium for Guide Mining's stock is closest to ?

Reference no: EM132810277

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