What is the risk premium for a company that has a yield rate of 6.24% when the risk-free rate is 4.88%?
A) 4.88%
B) 1.36%
C) 6.24%
D) 11.12%
E) None of the above

Name: What is the risk premium for a company that has a yield rate of 6.24% when the risk-free rate is 4.88%? A) 4.88% B) 1.36% C) 6.24% D) 11.12% E) None of the above
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Question

Quizplus · Accepted Answer

The risk premium is calculated by subtracting the risk-free rate from the yield rate of the investment. Therefore, 6.24% - 4.88% = 1.36%.

What Is the Risk Premium for a Company That Has