Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work A stock has a beta of 0.76, the expected return on the market is 12 percent, and the risk-free rate is 3.43

please show work
image text in transcribed
A stock has a beta of 0.76, the expected return on the market is 12 percent, and the risk-free rate is 3.43 percent. What must the market risk premium on this stock be? (Do not round any intermediate calculations. List your answer as a percent, round your final answer to 2 decimal places and enter it in the box below.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Finance Book

Authors: Stuart Warner, Si Hussain

2nd Edition

1292401982, 978-1292401980

More Books

Students also viewed these Finance questions

Question

Question 5 please refer to the picture for details

Answered: 1 week ago

Question

Compare and contrast long-term and short-term orientation cultures

Answered: 1 week ago

Question

Discuss the research behind the notion of a pancultural self

Answered: 1 week ago