A Stock Has a Return of 13

question 26

Multiple Choice

A stock has a return of 13.2 percent, and the risk-free rate is 4.6 percent. What is the risk premium for this stock?

• A) 4.6%
• B) 6.4%
• C) 8.6%
• D) 13.2%
• E) 17.8%

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Definitions:

Union

An association or amalgamation of individuals or groups for a common purpose, often used in the context of labor organizations or the act of joining.

Strike

A strike is a collective action undertaken by workers, refusing to work to enforce demands concerning their employment conditions, such as wages, hours, or benefits.

Vacation Days

Days allocated to an employee on which they are allowed to be absent from work, typically for rest or leisure.

Independent Premises

Refers to arguments where each premise supports the conclusion on its own.