Question: The risk premium for an individual security is computed by: a. adding the risk-free rate to the security's expected return. b. dividing the market risk

The risk premium for an individual security is computed by: a. adding the risk-free rate to the security's expected return. b. dividing the market risk premium by the beta of the security. c. multiplying the security's beta by the risk-free rate of return. d. dividing the market risk premium by the quantity (1+Beta).

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