Question
Problem 8-08 Two stocks, A and B, have beta coefficients of 1.5 and 0.4, respectively. If the expected return on the market is 11 percent
Problem 8-08
Two stocks, A and B, have beta coefficients of 1.5 and 0.4, respectively. If the expected return on the market is 11 percent and the risk-free rate is 6 percent, what is the risk premium associated with each stock? Round your answers to two decimal places.
The risk premium for stock A: %
The risk premium for stock B: %
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The Selected Works Of George J. Benston Banking And Financial Services Volume 1
Authors: James D. Rosenfeld
1st Edition
0195389018, 0199745471, 9780199745470
