Expected return of market portfolio according to CAPM

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Reference no: EM131916299

1. Amon Amarth’s stock has an expected return of 13 percent and a beta of 0.9. If the risk-free rate is 4.55 percent, what is the expected return of the market portfolio according to CAPM?

12.94%

13.24%

14.50%

9.39%

2. Consider the following cash flow in $ for a project. What is the maximum number of rates of return greater than -100% that this cash flow may have, for n = 0 through 5? Enter your answer as an integer, and the answer could be 0. NOTE: You should not try to calculate or find the rates of return.

4,000

-2,600

-1000

2,200

990

-410

Reference no: EM131916299

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