1. Based on the following market information:

   Firm	Beta	Standard Deviation (Volatility)
   "Zeta"	0.45	20%
   "Gamma"	0.75	18%
   "Theta"	1.05	35%
   "Omega"	1.20	25%

   Assume that the risk-free rate of interest is 3% and you estimate the market's expected return to be 9%. The risk premium for "Gamma" is closest to:

   		4.50%.
   		7.50%.
   		9.30%.
   		9.75%.