The Risk Premium for an Individual Security Is Computed by

question 33

Multiple Choice

The risk premium for an individual security is computed by

• A)adding the risk-free rate to the security's expected return.
• B)multiplying the security's beta by the market risk premium.
• C)multiplying the security's beta by the risk-free rate of return.
• D)dividing the market risk premium by the beta of the security.
• E)dividing the market risk premium by the quantity (1 − Beta).

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Definitions:

System.out.printf

A method in Java used to print formatted strings to the console or other output stream.

Decimal Number

A number that is represented using a decimal system, which is based on ten, using digits 0 through 9.

Dot Operator

In programming, the dot operator is used to access the properties or methods of an object.

Printf Method

A method in Java's PrintStream class that allows formatted strings to be output to the console, similar to the printf function in C.