A Company Has a Beta of 4

question 14

Multiple Choice

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

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