The expected return on the market for next period is 11 percent. The risk-free rate is 4 percent, and Alpha Company has a beta of 1.1. The market risk premium is:
A) 7.7 percent.
B) 7 percent.
C) 11 percent.
D) 12.1 percent.

Question

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The Answer of The expected return on the market for next period is 11 percent. The risk-free rate is 4 percent, and Alpha Company has a beta of 1.1. The market risk premium is:
A) 7.7 percent.
B) 7 percent.
C) 11 percent.
D) 12.1 percent.

The Expected Return on the Market for Next Period Is