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Problem 6-13 TUTOR WILL YOU PLACE THE HOMEWORK ON...

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Problem 6-13 TUTOR WILL YOU PLACE THE HOMEWORK ON A EXCEL SPREADSHEET , THANK YOU" Historical Returns: Expected and Required Rates of Return You have observed the following returns over time Year Stock X Stock Y Market 2006 14% 11% 12% 2007 18 6 8 2008 -12 -8 -13 2009 5 2 2 2010 18 12 12 Assume that the risk-free rate is 3% and the market risk premium is 14% QUESTION: What is the required rate of return on Stock X? Round your answer to two decimal places. _____________ % What is the required rate of return on Stock Y? Round your answer to two decimal places. ______________

 

Paper#7075 | Written in 18-Jul-2015

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