Question: The expected return on stock A is 15.78 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.62. a-

The expected return on stock A is 15.78 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.62.

a- What is the right equation to calculate the risk premium?

b- Based on the given information in the previous question, what is the risk-free rate of return?

c- Based on the given information above, what is the risk premium?

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