A Stock Has a Beta of 1

question 18

Multiple Choice

A stock has a beta of 1.58 and an expected return of 16.2%. The risk-free rate is 3.8%. What is the market risk premium?

• A)7.85%
• B)10.01%
• C)11.72%
• D)12.50%
• E)13.40%

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Money or goods received, especially on a regular basis, as a result of labor, investments, or business activities.

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