A Stock Has an Expected Return of 12

question 2

Multiple Choice

A stock has an expected return of 12.25 percent. The beta of the stock is 1.15 and the risk-free rate is 5 percent. What is the market risk premium?

• A) 1.30%
• B) 6.50%
• C) 15.00%
• D) 6.30%
• E) 7.25%

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Definitions:

Exception Questions

In therapy, questions designed to help clients identify and explore times when their problem did not occur, highlighting their personal coping strategies and strengths.

Complex Reflections

In counseling, responses that deepen the conversation by adding meaning or expanding on what the client has said.

Add Meaning

The act of giving significance or value to experiences or objects, often by associating them with emotions, thoughts, or values.

MI Guidelines

Standards or protocols associated with motivational interviewing, aimed at enhancing an individual's motivation towards change.