Sarina Stable Supply stock has a risk premium of 6.2 percent while the inflation rate is 1.7 percent and the risk-free rate is 3.1 percent.What is the expected return on this stock?
A) 10.2 percent
B) 7.63 percent
C) 9.3 percent
D) 10.9 percent
E) 12.4 percent
Correct Answer:
Verified
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