Nisha Sharma posted an Question
October 19, 2021 • 22:44 pm 30 points
  • UGC NET
  • Commerce

Rm=expected returm on marker note: risk premium =(rm - rr) example : nokia mobile corporation has a beta coefficient of 0.88. estimate its cost of equity if the

Rm=Expected returm on marker Note: Risk Premium =(Rm - Rr) Example : Nokia Mobile Corporation has a beta coefficient of 0.88. Estimate its cost of equity if the isk free rate is 4% and return on the broad market index is 8% Solution: Under Capital Aset Pricing Model heta coefficient x equity risk premium

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  • Rucha rajesh shingvekar best-answer

    7.52%

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    mam 4Percent means while multiplying we will only take 4 & not 4/100 since percent is given

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    see attachment (both methods are correct) First method for easy calculation

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