Last Year,ABC Stock Returned 11

question 37

Multiple Choice

Last year,ABC stock returned 11.43 percent,the risk-free rate was 3.0 percent,and the inflation rate was 2.5 percent.What was the risk premium on ABC stock?

• A) 8.20 percent
• B) 8.43 percent
• C) 8.60 percent
• D) 8.88 percent
• E) 8.97 percent