Thursday, February 18, 2016

CAPM compute the expected return rate of return for Companies A and B

8:43 AM

Share it Please
CAPM compute the expected return rate of return for Companies A and B. Assume
using the CAPM compute the expected return rate of return for Companies A and B. Assume a market risk premium of 3%, a risk-free rate of 4%, a Beta for company A of .90 and a Beta for company B of 1.3

Using the CAPM, compute the expected rate of return for a portfolio with 25% stake in company A and a 75% stake in company B. Assume a Market risk premium of 3% and a risk-free rate of 4%

0 comments:

Post a Comment