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Identify on the graph the market risk premium

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Reference no: EM132668315

Phoebe corporation has a beta of .8, the risk-free rate is 1.2 percent, and the return on the market is 10 percent.

a. Calculate the required rate of return, the market risk premium, and the security risk premium.

b. Graph the security market line and identify on the graph the market risk premium and the security risk premium.

Reference no: EM132668315

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