Given the following information for ABB Ltd: Risk free rate = 5% p.a. Mark risk premium = 12% Beta coefficient =1.3 According to the Capital Asset Pricing Model (CAPM), ABB Ltd has an expected return of: a. 20.6% b. 14.1% c. 17% d. 10%

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
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Given the following information for ABB Ltd:
Risk free rate = 5% p.a.
Mark risk premium = 12%
Beta coefficient =1.3
According to the Capital Asset Pricing Model (CAPM), ABB Ltd has an expected return of:
a. 20.6%
b. 14.1%
c. 17%
d. 10%
Transcribed Image Text:Given the following information for ABB Ltd: Risk free rate = 5% p.a. Mark risk premium = 12% Beta coefficient =1.3 According to the Capital Asset Pricing Model (CAPM), ABB Ltd has an expected return of: a. 20.6% b. 14.1% c. 17% d. 10%
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