A Stock Has an Expected Return of 12

question 126

Multiple Choice

A stock has an expected return of 12.60%.Its beta is 1.49 and the risk-free rate is 5.00%.What is the market risk premium?

• A)5.10%
• B)5.23%
• C)5.36%
• D)5.49%

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Definitions:

Blood-Injection-Injury Type Phobia

A specific phobia involving intense fear and avoidance of blood, injections, and injuries.

Situational Type Phobia

A specific anxiety disorder characterized by an intense, irrational fear of certain situations or environments, such as flying or enclosed spaces.

Social Anxiety Disorder

A psychological condition characterized by an intense fear of social situations, leading to avoidance and significant distress.

Natural Environment Type Phobia

An intense, irrational fear of situations or elements in the natural environment, such as storms or heights.