The common stock of Jensen Shipping has a risk premium of 11.00 percent. What is the market risk-premium if the company's beta is 1.0? What is expected return on the market if the risk-free return is 2.00 percent?

a) Risk premium is 11.50 percent; Market expected return is 9.50 percent b) Risk premium is 10.70 percent; Market expected return is 8.70 percent c) Risk premium is 11.00 percent; Market expected return is 13.00 percent d) Risk premium is 11.75 percent; Market expected return is 9.75 percent e) Risk premium is 11.00 percent; Market expected return is 13.00 percent

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