risk free rate

Maneesh 03 May 2020 at 14:00 PM

If the risk-free rate is 4% and the expected return on the market is 9%, the risk premium for a security with a beta of 0.5 is
A) 2.5 %
B) 50 %
C) 6.5 %
D) 5 %

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FACULTY 14 May 2020 at 02:17 PM

Option A

(9%-4%)*0.5

=2.5%



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