Multiple Choice
A stock has an expected return of 12.25 percent. The beta of the stock is 1.15 and the risk-free rate is 5 percent. What is the market risk premium?
A) 1.30%
B) 6.50%
C) 15.00%
D) 6.30%
E) 7.25%
Correct Answer:
Verified
Correct Answer:
Verified
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