Last year,ABC stock returned 11.43 percent,the risk-free rate was 3.0 percent,and the inflation rate was 2.5 percent.What was the risk premium on ABC stock?
A) 8.20 percent
B) 8.43 percent
C) 8.60 percent
D) 8.88 percent
E) 8.97 percent
Correct Answer:
Verified
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