Multiple Choice
A stock has an average historical risk premium of 6.1 percent. The expected risk-free rate for next year is 2.2 percent. What is the expected rate of return on this stock for next year?
A) 6.50%
B) 7.53%
C) 8.00%
D) 8.30%
E) 9.34%
Correct Answer:
Verified
Correct Answer:
Verified
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