Company Risk Premium a Company Has a Beta of 4

question 24

Multiple Choice

Company Risk Premium A company has a beta of 4.5. If the market return is expected to be 14 percent and the risk-free rate is 7 percent, what is the company's risk premium?

• A) 7.0%
• B) 25.5%
• C) 31.5%
• D) 38.5%

---

Definitions:

Insurance Programs

Schemes offered by companies or governments to provide financial protection and risk management for individuals, properties, and liabilities.

Informed Consent

A process ensuring individuals are fully educated about what they are agreeing to participate in, mainly regarding research or medical procedures, ensuring voluntariness and awareness of potential risks and benefits.

Opt-In

Opt-in refers to a permission-based practice where individuals choose to receive marketing communications or other information by signing up voluntarily.

Opt-Out

The action taken to withdraw from something, especially a service or agreement, often implying the need for a decision to be actively made by the participant.