Assuming a 15% risk-free rate, cost of equity of 25% and a beta of 1, what is the excess market premium?



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please solve

5 Answer(s)


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Kce=RFR + Beta(EMP-RFR)
=>By putting the values EMP= 25%

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Dipanjan is right. That is the correct formula. Once you substitute you will get it.

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Sorry the answer is not 25 %.. sir can u eloborate o this pls..

Assuming a 15% risk-free rate, cost of equity of 25% and a beta of 1, what is the excess market premium?


10% - Correct
15%
25% - Incorrect

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