Answered: If the risk-free rate is 10.1 percent…

If the risk-free rate is 10.1 percent and the market risk premium is 4.2 percent, what is the required return for the market? A. 4.2 percent. B. 5.9 percent. C. 14.3 percent. D. 10.1 percent.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 2P: APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free...

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Question

General Accounting

If the risk-free rate is 10.1 percent and the market risk
premium is 4.2 percent, what is the required return for the
market?
A. 4.2 percent.
B. 5.9 percent.
C. 14.3 percent.
D. 10.1 percent.

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