What is the risk premium on the market

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Reference no: EM131336152

Perform the following in Excel, the Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. On the basis of the capital asset pricing model:

a What is the risk premium on the market?

b What is the required return on an investment with a beta of 1?

c What is the required return on an investment with a beta of 0?

d What is the required return on an investment with a beta of 1.6?

e What is the slope of the SML?

Reference no: EM131336152

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