标题: q76 Elan Mock 3 [打印本页] 作者: fructify 时间: 2011-7-11 18:23 标题: q76 Elan Mock 3
Hey guys this questions gives you the CRP. I thought we were suppose to minus the risk free rate from the Capm model. They just ignore and add the CRP
Any thoughts? I emailed them haven't heard back yet.作者: Kiakaha 时间: 2011-7-11 18:23
I'm not exactly sure what you are asking. If it is what i think it is then you are failing to realize what they gave you in the question is the Market Risk Premium.
***(Expected Return - RFR) = Market Risk Premium.
Therefore, the CAPM can be written as:
RFR + Beta [(Expected Return - RFR) +CRP], or
RFR + Beta (Market Risk Premium + CRP)
Remember to include CRP if required by the question.
