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| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 4 Days Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
1. (Capital asset pricing model) The beta on Marks & Spencer Group plc. as on 19 October, 2015, is 0.9392. Assume that the return on U.K. Treasury bills is 1.94Â percent and that the return on FTSE All Share market index is 5 percent. Calculate the expected return and risk premium on Marks & Spencer Group plc
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2. (Capital asset pricing model) The expected return for the general market is 12.8 percent, and the risk premium in the market is 9.3 percent. Tasaco, LBM, and Exxos have betas of 0.864, 0.693, and 0.575, respectively. What are the corresponding required rates of return for the three securities?
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