Return 0 [Ch 13] Use the information provided in the graph to answer the next three problems. 4 2 20 18- 16 14- 12- 10 8 6 SML 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Beta 22. What is the risk-free rate of return? (to nearest 0.1%) % 23. What is the market risk premium? (to nearest 0.1%) %

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 7P
Question
Return
0
[Ch 13] Use the information provided in the graph to answer the next three problems.
4
2
20
18-
16
14-
12-
10
8
6
SML
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2
Beta
22. What is the risk-free rate of return?
(to nearest 0.1%)
%
23. What is the market risk premium?
(to nearest 0.1%)
%
Transcribed Image Text:Return 0 [Ch 13] Use the information provided in the graph to answer the next three problems. 4 2 20 18- 16 14- 12- 10 8 6 SML 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Beta 22. What is the risk-free rate of return? (to nearest 0.1%) % 23. What is the market risk premium? (to nearest 0.1%) %
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