You Find a Stock with Returns of 14

question 93

Multiple Choice

You find a stock with returns of 14.2%, - 10.1%, 8.7%, 29.7%, and 18.2%. The risk-free rate over this period was 6.4%, 6.8%, 5.2%, 4.4% and 5.3%. What was the arithmetic average risk premium?

• A) 5.57%
• B) 5.86%
• C) 6.52%
• D) 7.01%
• E) 7.34%

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