A Stock Has a Beta of 1

question 48

Multiple Choice

A stock has a beta of 1.58 and an expected return of 16.2 percent.The risk-free rate is 3.8 percent.What is the market risk premium?

• A) 7.85 percent
• B) 10.01 percent
• C) 11.72 percent
• D) 12.50 percent
• E) 13.40 percent

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