Market risk premium and expected rate of return on market

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Reference no: EM132047444

1. What return measure best allows someone to compare asset returns over different length time periods?

A) Holding Period Return

B) Annualized Returns

C) Net Portfolio Return

2. Stock A has a beta of 0.4, and investors expect it to return 3%. Stock B has a beta of 1.6, and investors expect it to return 9%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Enter your answers as a whole percent.)

Reference no: EM132047444

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