Desreumaux Inc's Stock Has an Expected Return of 12

question 83

Multiple Choice

Desreumaux Inc's stock has an expected return of 12.25%, a beta of 1.25,
And is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium?

• A) 5.80%
• B) 5.95%
• C) 6.09%
• D) 6.25%
• E) 6.40%

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A mineral composed primarily of sodium chloride (NaCl), used as a seasoning and preservative in foods.