Asset Y Has a Beta of 1

question 56

Multiple Choice

Asset Y has a beta of 1.2. The riskfree 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) 10 percent.
• B) 6.0 percent.
• C) 7.2 percent.
• D) 13.2 percent.

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