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Question: Implying the Market Risk Premium: Procter & Gamble (Easy) Analysts give Procter & Gamble, the consumer products finn, an equity beta of 0.65. The risk-free rate is 4.0 percent. An analyst calculates an equity cost of capital for the firm of 7.9 percent using the capital asset pricing model (CAPM). What market risk premium is she assuming?

Marketing Management, Management Studies

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