5 p Question 2 Penguin Internationals stock has an expected

5 p Question 2 Penguin International\'s stock has an expected return of 12.8%, a beta of 1.25 If the risk-free rate is 2%, what is the market risk premium according to the CAPM? Your answer should be between 7.74 and 10.58, rounded to 2 decimal places, with no speciicharacters

Expected return=Risk free rate+Beta*Market risk premium

12.8=2+1.25*Market risk premium

Market risk premium=(12.8-2)/1.25

which is equal to

=8.64%

$5 p Question 2 Penguin International\'s stock has an expected return of 12.8%, a beta of 1.25 If the risk-free rate is 2%, what is the market risk premium acco$

5 p Question 2 Penguin Internationals stock has an expected

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