According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%?
A) 4%
B) 4.8%
C) 6.6%
D) 8%

Name: According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%? A) 4% B) 4.8% C) 6.6% D) 8%
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Quizplus · Accepted Answer

13.6 = 4 + 1.2 × (MRP); MRP = 8%

According to the CAPM, What Is the Market Risk Premium