The Expected Return on the Market for Next Period Is

question 23

Multiple Choice

The expected return on the market for next period is 11 percent.The risk-free rate is 4 percent,and Alpha Company has a beta of 1.1.The market risk premium is:

• A)7.7 percent.
• B)7 percent.
• C)11 percent.
• D)12.1 percent.

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Definitions:

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