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    Fundamentals of Investments
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    Exam 12: Return, Risk and Security Management
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    The Current Risk-Free Rate Is 6
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The Current Risk-Free Rate Is 6

Question 85

Question 85

Multiple Choice

The current risk-free rate is 6.2 percent. A stock has an expected return if 10.8 percent and a beta of 0.90. What is the market risk premium?


A) 13.21%
B) 6.57%
C) 12.83%
D) 5.11%
E) 8.59%

Correct Answer:

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