The expected return on Karol Co. stock is 16.5 percent. If the risk-free rate is 5 percent and the beta of Karol Co is 2.3, then what is the risk premium on the market portfolio?
A) 2.5%
B) 5.0%
C) 7.5%
D) 10.0%

Question

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The Answer of The expected return on Karol Co. stock is 16.5 percent. If the risk-free rate is 5 percent and the beta of Karol Co is 2.3, then what is the risk premium on the market portfolio?
A) 2.5%
B) 5.0%
C) 7.5%
D) 10.0%

The Expected Return on Karol Co