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  3. Study Set
    Principles of Corporate Finance
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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
  5. Question
    If the Market Risk Premium Is 8%,then According to the CAPM,the
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If the Market Risk Premium Is 8%,then According to the CAPM,the

Question 49

Question 49

Multiple Choice

If the market risk premium is 8%,then according to the CAPM,the risk premium of a stock with beta value of 1.7 must be:


A) less than 12%.
B) 12%.
C) greater than 12%.
D) cannot be determined.

Correct Answer:

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