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What is its expected return based on CAPM

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Reference no: EM133046554

Question - The risk-free rate is 8 per cent, and the market expects a return twice that.

A) If the beta value of a share is 0.85, what is its expected return based on CAPM?

B) In this case, what is the market risk premium?

C) If the expected return on another share is based on a 17% CAPM, what is its beta value?

Reference no: EM133046554

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