Multiple Choice
If the market risk premium is (rm - rf) is 8%, then according to the CAPM, the risk premium of a stock with beta value of 1.7 must be:
A) less than 12%
B) 12%
C) greater than 12%
D) cannot be determined
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q14: The distribution of daily returns for a
Q15: In practice, efficient portfolios are generated using:<br>A)
Q16: Investments B and C both have the
Q17: The correlation measures the:<br>A) Rate of movements
Q19: Briefly explain the capital asset pricing model.
Q19: Tests of CAPM have confirmed that Capital
Q20: The three factors in the Three-Factor Model
Q21: Given the following data for a stock:
Q22: By combining lending and borrowing at the
Q23: If a stock is under priced it