Item$20$

$5$points

Item $20$

TB MC Qu$.13-41$ An analyst wishes to estimate the amount of$...$

An analyst wishes to estimate the amount of additional reward she will receive for investing in a risky asset rather than a risk$-$free asset. The minimum values she will need to know are:

Ione. both assets$$ standard deviations

IItwo. the risky asset's beta

IIIthree. the risk$-$free rate of return

IVfour. the market risk premium

Multiple Choice

IItwo and IVfour only

IIIthree and IVfour only

Ione and IIIthree only

Ione, IItwo, IIIthree, and IVfour

Ione, IIIthree, and IVfour only