Jerilu Markets has a beta of 1.09. The risk-free rate of return is 2.75 percent and the

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Jerilu Markets has a beta of 1.09. The risk-free rate of return is 2.75 percent and the market rate of return is 9.80 percent. What is the risk premium on this stock?

A. 6.47 percent

B. 7.03 percent

C. 7.68 percent

D. 8.99 percent

E. 9.80 percent

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Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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Question Posted: Jan 09, 2013 03:54 AM

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