Question: The risk premium for an individual security is computed by: multiplying the security's beta by the risk-free rate of return. dividing the market risk premium

The risk premium for an individual security is computed by:

multiplying the security's beta by the risk-free rate of return.

dividing the market risk premium by the beta of the security. dividing the market risk premium by the quantity (1 + Beta). multiplying the security's beta by the market risk premium. adding the risk-free rate to the security's expected return.

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