A stock has an average historical risk premium of 5.6 percent.The expected risk-free rate for next year is 2.4 percent.What is the expected rate of return on this stock for next year?
A) 6.50 percent
B) 7.53 percent
C) 8.00 percent
D) 9.34 percent
E) 11.70 percent
Correct Answer:
Verified
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