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What is the risk premium on the market

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Reference no: EM132925864

Question - The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%. According to 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 1.6?

c. If an investment with a beta of 0.8 offers an expected return of 8.6%, does it have a positive or negative NPV?

d. If the market expects a return of 11.0% from stock X, what is its beta?

Reference no: EM132925864

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