Assume the overall market has a risk premium of 7.1 percent,and the risk-free rate is 2.9 percent.What is the risk premium for a stock that has a beta of 0.94 and a standard deviation of 12.7 percent?
A) 5.62%
B) 6.67%
C) 7.29%
D) 5.58%
E) 6.82%
Correct Answer:
Verified
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