Alpha Stock Has a Beta of 1

question 27

Multiple Choice

Alpha stock has a beta of 1.29.The risk-free rate of return is 3.2 percent,and the market rate of return is 10.7 percent.What is the Alpha stock risk premium?

• A)7.24%
• B)9.30%
• C)7.59%
• D)8.77%
• E)9.68%

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