The main variables in determining market risk premium for a stock using CAPM are 1. option prices 2. bond prices 3. risk free rate 4. expected return from the market 5. Beta The MODEL that is most often used to show the relationship between expected return on a stock and beta is 1. E{Rstock}=E(Rmarket)+Rf Beta 2. E{Rstock}=Rf+ Beta /Rf 3. E{Rstock}=Rf+ (Risk premium) Beta 4. E{R stock }= Risk premium/Beta +S&P500 return Rf= risk free rate, E{ Rstock }= expected return on the stock, E( Rmarket )= Expected return on the The main variables in determining market risk premium for a stock using CAPM are [ Select] 4. expected return from the market 5. Beta The MODEL that is most often used to show the relationship between expec 1. Option prices 2. bond prices 3. risk free rate 4. expected return from the market 5. Beta The MODEL that is most often used to show the relationship between expected return on a stock and beta is [Select] [Select] 1 and 2 are correct + Rf + Beta 2 and 4 are correct 3 is correct 4 and 2 are correct 4. E\{Rstock }= Risk premium/Beta + S\&P5OO return Vote: Rf= risk free rate, E{ Rstock }= expected return on the stock, E( Rmarket )= Expected return on the larket