Jerilu Markets Has a Beta of 1

question 82

Multiple Choice

Jerilu Markets has a beta of 1.09. The risk-free rate of return is 3.18 percent and the market rate of return is 11.27 percent. What is the risk premium on this stock?

• A) 3.47 percent
• B) 7.03 percent
• C) 8.82 percent
• D) 8.99 percent
• E) 7.80 percent

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Definitions:

Biceps Brachii

A muscle located in the upper arm responsible for bending the elbow and rotating the forearm.

External Oblique

A muscle located in the outer layer of the abdomen, responsible for rotating and flexing the trunk of the body.

Antagonist

A substance that acts against and blocks an action by attaching to and inhibiting the function of a receptor.

Prime Mover

The muscle responsible for most of the movement when a body movement is produced by a group of muscles.