Question
The current expected risk-free rate is 4%, the equity
premium is 3.9% and the beta is 0.8. calculate the return on equity.Solution
According to CAPM return on equity = Risk-free rate + beta (market rate – risk-free rate) market rate – risk-free rate = market premium Therefore, return on equity is: 0.04 + 0.8(0.039) = 0.0712 ~7.12%
- What is the primary reason for India’s 42-month low trade deficit in February 2025?
What is the primary goal of the National Agro-RE Summit 2025?Â
When was Unified Payments Interface (UPI) launched?
Which country added the most gold to its reserves in October 2024?
What do we call the banks which provide capital to the firms in the form of shares and engage in underwriting of stocks?
What is the purpose of AgeXtend, the AI-based tool developed by IIIT-Delhi?
Who is the new Managing Director and CEO of Central Depository Services (India) Limited (CDSL)?
Which global bank recently partnered with India’s NPCI International to expand UPI services in the UAE?
Recently a ship “ Aconit ” visited Mumbai . The ship belongs to?
Which country's authorities are preparing to host the 57th ASEAN Foreign Ministers’ Meeting?
