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Given the information below, which security has the greatest risk premium, and how much is it? Treasury Bond Stock A Stock B Expected Return 3%
Given the information below, which security has the greatest risk premium, and how much is it?
| Treasury Bond | Stock A | Stock B |
Expected Return | 3% | 6% | 8% |
Standard Deviation | 0% | 14% | 13% |
a. | Stock A; 14% | |
b. | Stock A; 8%
| |
c. | Stock B; 13%
| |
d. | Stock B; 5% |
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