Multiple Choice
Stock A has a required return of 19 percent. Stock B has a required return of 11 percent. Assume a risk-free rate of 4.75 percent. By how much does Stock A's risk premium exceed the risk premium of Stock B?
A) 3.25 percent
B) 6.25 percent
C) 8.00 percent
D) 7.00 percent
Correct Answer:
Verified
Correct Answer:
Verified
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