Chapter 8 Formulas

Chapter 8 Formulas - C hapter 8 Formulas r RF = R isk Free...

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Chapter 8 Formulas r RF = Risk Free Rate r M = Expected Return on Overall Market/Expected Rate of Return on an Average Stock r = Required Rate of Return on Stock b i = Beta of Asset RP M = Market Risk Premium [r M – r RF ] = Market Risk Premium r* = Real Inflation – Free Rate of Return IP = Inflation Premium = Expected Rate of Return
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This note was uploaded on 06/12/2011 for the course FINC 302 taught by Professor Lawrence during the Spring '11 term at Nicholls State.

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Chapter 8 Formulas - C hapter 8 Formulas r RF = R isk Free...

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