Alpha stock has a beta of 1.29.The risk-free rate of return is 3.2 percent,and the market rate of return is 10.7 percent.What is the Alpha stock risk premium?
A)7.24%
B)9.30%
C)7.59%
D)8.77%
E)9.68%

Name: Alpha stock has a beta of 1.29.The risk-free rate of return is 3.2 percent,and the market rate of return is 10.7 percent.What is the Alpha stock risk premium? A)7.24% B)9.30% C)7.59% D)8.77% E)9.68%
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Question

Quizplus · Accepted Answer

Risk premium = 1.29(0.107 − 0.032)= 0.0968,or 9.68%

Alpha Stock Has a Beta of 1