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FMCAPM formula

FFarzan5y ago
I have noticed some inconsistencies in the formula calculation in the bpp revision kit. In some answers they multiply the beta by the risk premium without deducting the risk free rate and in others they do deduct the risk free rate. It is rather confusing? I know in the lectures John specifically deducts it and the formula clearly tells us to do as much.
John MoffatJohn MoffatTutor5y ago#1
But I do also say in the lectures that the risk premium is the difference between the return on equity and the risk free rate. :-)
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