Multiple Choice
The required rate of return on the Daisy Corporation's ordinary share is 11%, the current real rate of return in the market is 1%, and the market's risk- free rate of return is 4%. In this case, the risk premium associated with Daisy's stock is
A) 5%.
B) 7%.
C) 8%.
D) 6%.
Correct Answer:
Verified
Correct Answer:
Verified
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