Nisha sharma Asked a Question
October 19, 2021 5:14 pmpts 30 pts
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 thankyou
    7.52%
    • cropped2875426112591415689.jpg
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    Nisha sharma
    mam 4Percent means while multiplying we will only take 4 & not 4/100 since percent is given
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