Question: The expected return from a stock is 12% and the standard deviation is 10%. If the T-bill rate is 5%, then the risk premium from
The expected return from a stock is 12% and the standard deviation is 10%. If the T-bill rate is 5%, then the risk premium from the stock is
A)5%
B)3%
C)15%
D)7%
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
