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Marble Corp

question 61

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Marble Corp.has a beta of 2.5 and a standard deviation of returns of 20%.The return on the market portfolio is 15% and the risk-free rate is 4%.What is the risk premium on the market?


Definitions:

Yearly Variations

Changes that occur on an annual basis in various environmental or climatic factors, such as temperature, precipitation, and day length.

Playa

A shallow, closed basin in a generally dry environment.

Alluvial Fan

A fan or cone-shaped deposit of sediment built up by streams, typically found where a fast-flowing river flattens, slows, and spreads typically at the mouth of a canyon.

Desert Wash

A sandy or gravel-rich channel in a desert or other arid region.

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