Calculate the Risk Premium on Stock C Given the Following

question 41

Multiple Choice

Calculate the risk premium on stock C given the following information: risk-free rate = 5%,market return = 13%,stock C's beta = 1.3.

• A) 8.0%
• B) 10.4%
• C) 15.4%
• D) 16.9%

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Definitions:

Miles

A unit of measure equal to 5280 feet or about 1609 meters, commonly used to measure distances.

Second-Class Tickets

A category of tickets offering a level of service below first-class, typically at a lower cost, in transportation.

First-Class Tickets

Tickets that provide the highest level of service and amenities offered by an airline, train, or other transportation service.

Income

The total amount of money earned or received by an individual or entity from various sources.