Ask Question
13 February, 02:25

Carolina insurance company, an all-equity life insurance firm, is considering the purchase of a fire insurance company. the fire insurance company is expected to generate a return of 20 percent with a beta of 2.5. if the risk-free rate is 8 percent and the market risk premium is 6 percent, the expected return from the insurance company is

+1
Answers (1)
  1. 13 February, 05:41
    0
    23% or 8 + 2.5 (6) using CAPM
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Carolina insurance company, an all-equity life insurance firm, is considering the purchase of a fire insurance company. the fire insurance ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers