The expected return for Zbrite stock calculated using the CAPM is 15.5%.The risk free rate is 3.5% and the beta of the stock is 1.2.Calculate the implied market risk premium.
A) 5.5%
B) 6.5%
C) 10.0%
D) 15.5%
E) 12.0%

Name: The expected return for Zbrite stock calculated using the CAPM is 15.5%.The risk free rate is 3.5% and the beta of the stock is 1.2.Calculate the implied market risk premium. A) 5.5% B) 6.5% C) 10.0% D) 15.5% E) 12.0%
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Quizplus · Accepted Answer

15.5 = 3.5 + 1.2(X).X = 10%.

The Expected Return for Zbrite Stock Calculated Using the CAPM