You are given information on two stocks. Stock AXE has a required return of 12.25% and analysts expected the stock to provide a return of 13%. The beta of AXE stock is 1.15. Stock NIP has a beta of 1.6 and analysts expected the returns of Stock NIP to be 14%. The risk-free rate is 5%. What is the market risk premium?

Answer rating: 100% (QA)

The market risk premium is the difference between the expected return ... View the full answer