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The Two Factor Model on a Share Provides a Risk

question 2

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The two factor model on a share provides a risk premium for exposure to market risk of 9%, a risk premium for exposure to interest rate of (-1.3%) , and a risk-free rate of 3.5%. What is the expected return on the share?

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Definitions:

Ratio

A connection between two figures that shows how often the first figure includes the second one.

Ratio

A quantitative relationship between two numbers showing how many times the first number contains the second or is contained by it.

Ratio

A quantitative relationship between two numbers indicating how many times the first number contains the second.

Ratio

A quantitative relationship between two numbers, showing how many times the first number contains the second.

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