Zoom,Inc. stock has a beta of 1.5. The risk-free rate of return is 3.7% and the market rate of return is 9.5%. What is the amount of the risk premium on Zoom stock?
A) 5.8%
B) 8.7%
C) 9.5%
D) 10.25%
E) 14.25%

Question

Quizplus · Accepted Answer

The Answer of Zoom,Inc. stock has a beta of 1.5. The risk-free rate of return is 3.7% and the market rate of return is 9.5%. What is the amount of the risk premium on Zoom stock?
A) 5.8%
B) 8.7%
C) 9.5%
D) 10.25%
E) 14.25%

Zoom,Inc Stock Has a Beta of 1