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The Risk-Free rate is 4.15 percent. What is the expected risk premium on this stock given the following information. Probability State Rate of return State

The Risk-Free rate is 4.15 percent. What is the expected risk premium on this stock given the following information.

                                           Probability State                   Rate of return

State of Economy               State of Economy                      Occurs 

Boom                                           .35                                        .14

Normal                                         .65                                        .08

A). 5.88%

B). 5.95%

C. 6.10%

D). 6.23%

E). 6.27%

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