Zelo,IncStock Has a Beta of 1

question 31

Multiple Choice

Zelo,Inc.stock has a beta of 1.33.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)7.32%