Question
What is the risk premium for XYZ stock if its expected real return is 11.29%, the expected inflation rate is 3.24%, and the risk-free return
What is the risk premium for XYZ stock if its expected real return is 11.29%, the expected inflation rate is 3.24%, and the risk-free return is 4.67%?
| a. | 8.05% (plus or minus 0.05 percentage points) | |
| b. | 3.13% (plus or minus 0.05 percentage points) | |
| c. | 6.62% (plus or minus 0.05 percentage points) | |
| d. | 10.23% (plus or minus 0.05 percentage points) | |
| e. | None of the above is within 0.05 percentage points of the correct answer |
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
