Determine the Market Risk Premium If the Risk Free Rate

question 75

Multiple Choice

Determine the market risk premium if the risk free rate is 4%, the company's Beta is.85 and its expected return is 15%.

• A)11.64%
• B)12.94%
• C)13.54%
• D)14.44%

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Definitions:

Food Sources

Anything that provides nutritional support for an organism, including plants, animals, and microorganisms.

Exotic Birds

Birds that are not native to a particular area and have been introduced from other regions, often as pets or for aviaries.

Endangered

refers to species that are at serious risk of extinction in the wild in the near future if the factors threatening their survival and reproduction do not improve.

Household Pets

Domesticated animals kept for companionship or pleasure rather than for work or survival.