Zelo,Inc Stock Has a Beta of 1

question 37

Multiple Choice

Zelo,Inc. stock has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo stock?

• A) 4.47%
• B) 5.50%
• C) 5.54%
• D) 6.77%
• E) 12.30%

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