Multiple Choice
Company Risk Premium A company has a beta of 4.5.If the market return is expected to be 14 percent and the risk-free rate is 7 percent,what is the company's risk premium?
A) 7.0 percent
B) 25.5 percent
C) 31.5 percent
D) 38.5 percent
Correct Answer:
Verified
Correct Answer:
Verified
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