Multiple Choice
Company Risk Premium A company has a beta of 2.91. If the market return is expected to be 16 percent and the risk-free rate is 4 percent, what is the company's risk premium?
A) 11.64%
B) 12.00%
C) 22.91%
D) 34.92%
Correct Answer:
Verified
Correct Answer:
Verified
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