Multiple Choice
Suppose you observe the following situation: 
Assume the capital asset pricing model holds and stock A's beta is greater than stock B's beta by 0.21.What is the expected market risk premium?
A) 8.8 percent
B) 9.5 percent
C) 12.6 percent
D) 17.9 percent
E) 20.0 percent
Correct Answer:
Verified
Correct Answer:
Verified
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