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    Exam 2: Diversification and Risky Asset Allocation
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    What Is the Risk-Free Rate If There Is a Stock
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What Is the Risk-Free Rate If There Is a Stock

Question 61

Question 61

Multiple Choice

What is the risk-free rate if there is a stock with a risk premium of 9.5 percent and the return of the stock is 19.9 percent?


A) 29.4%
B) 10.4%
C) 2.1%
D) 8.7%
E) 12.5%

Correct Answer:

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