Asset Y has a beta of 1.2. The riskfree rate of return is 6 percent, while the return on the market portfolio of assets is 12 percent. The asset's market risk premium is
A) 10 percent.
B) 6.0 percent.
C) 7.2 percent.
D) 13.2 percent.
Correct Answer:
Verified
Q38: The _is a measure of relative dispersion
Q39: Q40: War, inflation, and the condition of the Q41: The portion of an asset's risk that Q42: The _is the extent of an asset's Q44: An increase in the beta of a Q45: Risk that affects all firms is called Q46: The relevant portion of an asset's risk Q47: If the Canadian bond market's historical average Q48: The beta of the market
A)
A) is less
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