Alpha Stock Has a Beta of 1

question 3

Multiple Choice

Alpha stock has a beta of 1.43.The risk-free rate of return is 3.5 percent and the market rate of return is 11 percent.What is the amount of the risk premium on Alpha stock?

• A)5.24%
• B)5.50%
• C)7.50%
• D)8.77%
• E)10.73%

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Strongest

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Balance Theory

A psychological theory suggesting that people prefer harmony and consistency in their views of the world and relationships.

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A comprehensive framework that describes how individuals acquire, process, and retain knowledge and skills through experience, observation, and instruction.

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