4. Using data on daily stock returns over the last several months, you've calculated that, on average, stocks with a beta of .50 have tended to have average annualized returns of 7%. Meanwhile, stocks with betas of 2.0 have had average annualized returns of 19%. Assuming your analysis has correctly captured current market conditions, what is the current "market risk premium" for stocks? A. 8% B. 9.5% C. 12.5% D. 14% E. 19%

4. Using data on daily stock returns over the last several months, you've calculated that, on average, stocks with a beta of .50 have tended to have average annualized returns of 7%. Meanwhile, stocks with betas of 2.0 have had average annualized returns of 19%. Assuming your analysis has correctly captured current market conditions, what is the current "market risk premium" for stocks? A. 8% B. 9.5% C. 12.5% D. 14% E. 19%