Question
Problem 8-08 Two stocks, A and B, have beta coefficients of 0.5 and 1.0, respectively. If the expected return on the market is 12 percent
Problem 8-08
Two stocks, A and B, have beta coefficients of 0.5 and 1.0, respectively. If the expected return on the market is 12 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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Options Futures And Other Derivatives
Authors: John C. Hull
3rd Edition
0131864793, 9780306457555
