Solved

Jerilu Markets Has a Beta of 1

Question 54

Multiple Choice

Jerilu Markets has a beta of 1.09.The risk-free rate of return is 2.75 percent and the market rate of return is 9.80 percent.What is the risk premium on this stock?


A) 6.47 percent
B) 7.03 percent
C) 7.68 percent
D) 8.99 percent
E) 9.80 percent

Correct Answer:

verifed

Verified

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

Related Questions

Q34: The expected return on a portfolio:<br>I. can

Q39: According to CAPM, the amount of reward

Q50: The expected return on a portfolio considers

Q52: The expected return on JK stock is

Q53: Which one of the following will be

Q54: The standard deviation of a portfolio:<br>A) is

Q55: Suppose you observe the following situation: <img

Q56: Which one of the following stocks is

Q57: Standard deviation measures which type of risk?<br>A)total<br>B)nondiversifiable<br>C)unsystematic<br>D)systematic<br>E)economic

Q58: The systematic risk of the market is