Investment A has a beta of $1\mathrm{.}4$ and an expected rate of return of $15\mathrm{.}1\%.$ Investment B has a beta of $0\mathrm{.}7$ and an expected rate of return of $10\mathrm{.}7\%.$ What is the equity premium

 $($market risk premium$)?$ 

Answer rating: 100% (QA)

The equity premium also known as the market risk premium is the difference between the expected rate ... View the full answer