Multiple Choice
The two factor model on a stock provides a risk premium for exposure to market risk of 12%,a risk premium for exposure to silver commodity prices of 3.5% and a risk free rate of 4.0%.What is the expected return on the stock?
A) 11.6%
B) 13.0%
C) 15.3%
D) 19.5%
Correct Answer:
Verified
Correct Answer:
Verified
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