Question: The expected return on stock A is 15.68 percent while the expected return on the market is 10.23 percent. The stock's beta is 1.62. What

The expected return on stock A is 15.68 percent while the expected return on the market is 10.23 percent. The stock's beta is 1.62. What is the risk premium?

Select one:

a. 3.18%

b. 8.8%

c. 3.78%

d. -3.92%

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