Calculate the Risk Premium on Stock C Given the Following

question 59

Multiple Choice

Calculate the risk premium on Stock C given the following information: risk-free rate = 5%, market return = 13%, Stock C = 1.3 Beta.

• A)8.0%
• B)10.4%
• C)15.4%
• D)16.9%

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Definitions:

Social Responsibility

The obligation of companies to act in ways that benefit society at large, beyond their own interests or profitability.

Strategic Planning

The process of defining a business's direction and making decisions on allocating its resources to pursue this strategy, including its capital and people.

Performance Intention

The determination or resolve of an individual or organization to achieve specific performance outcomes or goals.

Entrepreneurial Behavior

Actions and attitudes characteristic of entrepreneurs, such as innovation, risk-taking, and proactiveness, in pursuing new business ventures.