Over the Past Five Years, Teen Clothing Stock Produced Returns

question 75

Multiple Choice

Over the past five years, Teen Clothing stock produced returns of 18.7, 5.8, 7.9, 10.8, and 11.6 percent, respectively. For the same five years, the risk-free rate was 5.2, 3.4, 2.8, 3.4, and 3.9 percent, respectively. What is the arithmetic average risk premium on Teen Clothing stock for this time period?

• A)6.89%
• B)7.01%
• C)7.22%
• D)7.34%
• E)7.57%

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