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jerilu markets has a beta of 1.23 the risk free rate of return is 2.10 percent and the market rate of return is 10.78 percent. what is the risk premium on this stock?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 12P: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average...

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Question

jerilu markets has a beta of 1.23 the risk free rate of return is 2.10 percent and the market rate of return is 10.78 percent. what is the risk premium on this stock?

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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