Find what is the risk premium on the market

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Reference no: EM132763852

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model:

Problem 1: What is the risk premium on the market?

Problem 2: What is the required return on an investment with a beta of 1.5? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Problem 3: If an investment with a beta of 0.7 offers an expected return of 8.5%, does it have a positive or negative NPV?

Problem 4: If the market expects a return of 10.8% from stock X, what is its beta?

Reference no: EM132763852

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