Porter Inc's Stock Has an Expected Return of 12

question 71

Multiple Choice

Porter Inc's stock has an expected return of 12.50%,a beta of 1.25,and is in equilibrium.If the risk-free rate is 2.00%,what is the market risk premium? Do not round your intermediate calculations.

• A) 10.50%
• B) 8.48%
• C) 7.98%
• D) 8.40%
• E) 6.80%

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