The risk-free rate is 2.05%. What is the expected risk premium on this stock given the following information?
$\begin{array}{lrr}
\text { State of the Economy } & \text { Probability of } & \text { Rate of Return if } \
& \text { State of Economy } & \text { state occurs }\
\text { Boom } & .35 & 16\%\
\text { Normal } & .65 & 6 \%
\end{array}$
A)6.88%
B)6.95%
C)7.32%
D)7.45%
E)7.59%

Question

Quizplus · Accepted Answer

The Answer of The risk-free rate is 2.05%. What is the expected risk premium on this stock given the following information?
$\begin{array}{lrr}
\text { State of the Economy } & \text { Probability of } & \text { Rate of Return if } \
& \text { State of Economy } & \text { state occurs }\
\text { Boom } & .35 & 16\%\
\text { Normal } & .65 & 6 \%
\end{array}$
A)6.88%
B)6.95%
C)7.32%
D)7.45%
E)7.59%

The Risk-Free Rate Is 2 A)688% B)6

The Risk-Free Rate Is 2 A)688%
B)6