The expected market return is 9 percent. The risk-free rate is 1 percent, and XYZ Co. has a beta of 1.4. XYZ's risk premium is:
A)8 percent.
B)11.2 percent.
C)12.2 percent.
D)10.3 percent

Question

Quizplus · Accepted Answer

The Answer of The expected market return is 9 percent. The risk-free rate is 1 percent, and XYZ Co. has a beta of 1.4. XYZ's risk premium is:
A)8 percent.
B)11.2 percent.
C)12.2 percent.
D)10.3 percent

The Expected Market Return Is 9 Percent