Stock a Has a Required Return of 19

question 85

Multiple Choice

Stock A has a required return of 19%. Stock B has a required return of 11%. Assume a risk-free rate of 4.75%. By how much does Stock A's risk premium exceed the risk premium of Stock B?

• A) 3.25%
• B) 6.25%
• C) 8.00%
• D) 7.00%

---

Definitions:

Handwashing

The act of cleaning hands with water and soap or a hand sanitizer to remove dirt, germs, and bacteria to prevent illness.

Health-Promoting Behaviors

Actions undertaken by individuals that contribute to maintaining or enhancing their well-being and health.

Feedback

Information provided about the output of a system, process, or activity that can be used as a basis for improvement, adjustment, or reinforcement.

Learning Process

The learning process involves acquiring knowledge, skills, behaviors, or attitudes through study, experience, or teaching, which leads to a change in understanding or behavior.