Company Y has a beta of 1.09. The risk-free rate of return is 3.18% and the market rate of return is 11.27%. What is the risk premium on this stock? Options: 7.80% 3.47% 8.82% 8.99% 7.03%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 2P: AA Corporations stock has a beta of 0.8. The risk-free rate is 4%, and the expected return on the...
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Company Y has a beta of 1.09. The risk-free rate of return is 3.18% and the market rate of return is 11.27%. What is the risk premium on this stock?

Options: 7.80% 3.47% 8.82% 8.99% 7.03%

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