Multiple Choice
Collectibles Corp.has a beta of 2.5 and a standard deviation of returns of 20%.The return on the market portfolio is 15% and the risk free rate is 4%.What is the risk premium on the market?
A) 5%
B) 6%
C) 9.00%
D) 11%
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q28: The Beta of a T-bill is zero.
Q41: According to the CAPM,for each unit of
Q46: How can investors reduce the risk associated
Q82: You purchased 1,000 shares of K.C Inc.common
Q84: Stanley Corp.common stock has a required return
Q85: A well-diversified portfolio includes investments in 50
Q89: You must add one of two investments
Q91: White Company stock has a beta of
Q122: The portfolio beta is simply the sum
Q130: The relevant variable a financial manager uses