Multiple Choice
Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market portfolio of assets is 12 percent. The asset's market risk premium is ________.
A) 7.2 percent
B) 6.0 percent
C) 13.2 percent
D) 10 percent
Correct Answer:
Verified
Correct Answer:
Verified
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