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Compute the Risk Premium for the Stock of Omega Tools

Question 9

Multiple Choice

Compute the risk premium for the stock of Omega Tools if the risk-free rate is 6%, the expected market return is 12%, and Omega's stock has a beta of 0.8.


A) 10.8%
B) 4.8%
C) 48.0%
D) 16.8%

Correct Answer:

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