Question: The risk premium for an individual security is computed by multiplying the security's beta by the market risk premium dividing the market risk premium by

 The risk premium for an individual security is computed by multiplying

The risk premium for an individual security is computed by multiplying the security's beta by the market risk premium 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 risk-free rate of return. adding the risk-free rate to the security's expected return. Question 4 3 pts If the standard deviation of retuns on S&P 500 is 10.95% and the coveriance between return on S&P 500 and return on Microsoft is 0.00841, what should be the beta of Microsoft? 0.82 0.81 0.70 0.75 0.74

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