What are the assumptions underlying the capm

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Reference no: EM131235387

1. What are the assumptions underlying the CAPM? Are the perfect market assumptions among them? Are there more?

2. The risk-free rate is 4%. The expected rate of return on the stock market is 7%. What is the appropriate cost of capital for a project that has a beta of 3?

3. The risk-free rate is 4%. The expected rate of return on the stock market is 12%. What is the appropriate cost of capital for a project that has a beta of 3?

Reference no: EM131235387

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