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jonny [76]
3 years ago
8

3. The CAPM suggests that securities having more systematic risk than the market should typically also earn a higher risk premiu

m than the market, and vice versa. Considering your estimate of beta and your sample average risk premia, is it true for Xerox?
Business
1 answer:
Effectus [21]3 years ago
6 0

Answer:

Given in keeping with CAPM proposal the safeties having additional systematic risk as the market ought to generally conjointly receive a high risk than the market, currently estimation price of beta and sample regular risk right for Xerox is:

The regular risk for (Xerox = zero.36 > 0.0124), sample regular risk for market and seeing that beta is extraordinary, additional organized risk than market threat.

Consequently, we have a tendency to embrace that safeties having additional organized than the market ought to generally earn a better risk than the market.

Yes, its undoubtedly right atleast for Xerox.

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