Assume the Following Data: Risk-Free Rate = 4

question 69

Multiple Choice

Assume the following data: Risk-free rate = 4.0 percent; average risk premium = 7.7 percent. Calculate the required rate of return for the risky asset.

• A)5.6 percent
• B)7.6 percent
• C)11.7 percent
• D)30.8 percent

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