Consider the following information about Stock A and the market. Stock A Standard Idiosyncratic The risk-free rate Standard expected return deviation standard deviation of of stock A deviation of market return return stock A return 9% 35% 19% 1% 30% Assume that the CAPM holds. What is the value of the market equity premium? Stock A a) 8.33% b) 8.16% c) 9.19% 9% 1% + Cover.mx d) 9.38% Var (rm) e) 15.0% E(ra) = rf + B (tm-rt)