Afin250

• Internal Code :
• Subject Code : AFIN250
• University : Macquarie University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name: Accounting and Finance

Investments 4. Expected Return on Stock = Risk- Free Return + (Beta *Market Risk Premium) CAMP Formula ERi =Rf + Bi(ERm –Rf) Where: ERi = Expected Return on Stock Rf = Risk- Free Return Bi = Beta (ERm –Rf)= Market Risk Premium Market Risk Premium = Expected Market Return – Risk Free Rate of return Substituting the value from excel provided Dominos: ERi = 1 + 0.377224(8-1) = 3.640568 Qantas …