Question
Porter Inc's stock has an expected return of 12.50%, a beta of 1.20, and is in equilibrium. If the risk-free rate is 2.00%, what is
Porter Inc's stock has an expected return of 12.50%, a beta of 1.20, and is in equilibrium. If the risk-free rate is 2.00%, what is the market risk premium? Do not round your intermediate calculations.
| a. 8.85% | ||
| b. 8.75% | ||
| c. 8.48% | ||
| d. 10.50% | ||
| e. 8.98% |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
