What is the appropriate long-run market risk premium

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You have just computed the Beta of a stock to be 2.5 and the estimate of the relevant risk-free rate is 5%. The expected market return next period is 12% and your estimate of Ke is 23%. What is the appropriate long-run market risk premium? a. 7.0% b. 7.2% c. 7.5% d. 8.0% e. 9.0%

Reference no: EM13922957

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What is the appropriate long-run market risk premium : You have just computed the Beta of a stock to be 2.5 and the estimate of the relevant risk-free rate is 5%. The expected market return next period is 12% and your estimate of Ke is 23%. What is the appropriate long-run market risk premium? a. 7.0% b...

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