Solved

Zelo,Inc Stock Has a Beta of 1

Question 37

Multiple Choice

Zelo,Inc. stock has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo stock?


A) 4.47%
B) 5.50%
C) 5.54%
D) 6.77%
E) 12.30%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q32: If investors possess homogeneous expectations over all

Q33: If the correlation between two stocks is

Q34: Quantpiks has been a hot stock the

Q35: Which one of the following stocks is

Q36: In the first chapter,it was stated that

Q39: You would like to combine a risky

Q40: For a highly diversified equally weighted portfolio

Q41: You recently purchased a stock that is

Q42: Systematic risk is measured by:<br>A) the mean.<br>B)

Q89: Risk that affects a large number of