$\begin{array}{c}
\begin{array}{c}
\underline{\text {State of the economy}}\
\text {Boom}\
\text {Normal}\
\text {Recession}
\end{array}
\begin{array}{c}
\underline{\text {Probability}}\
.3\
.4 \
.3
\end{array}
\begin{array}{c}
\underline{\text {Stock F}}\
65 \% \
14 \% \
-50 \%
\end{array}
\end{array}$

-If the risk-rate is 5.8 percent, what is the risk premium of Stock F?
A) 15.9%
B) 5.25%
C) 4.87%
D) 4.30%
E) 5.06%

Question

$\begin{array}{c}
\begin{array}{c}
\underline{\text {State of the economy}}\
\text {Boom}\
\text {Normal}\
\text {Recession}
\end{array}
\begin{array}{c}
\underline{\text {Probability}}\
.3\
.4 \
.3 
\end{array}
\begin{array}{c}
\underline{\text {Stock F}}\
65 \% \
14 \% \
-50 \%
\end{array}
\end{array}$
  
-If the risk-rate is 5.8 percent, what is the risk premium of Stock F?
A) 15.9%
B) 5.25%
C) 4.87%
D) 4.30%
E) 5.06%

Quizplus · Accepted Answer

The Answer of $\begin{array}{c}
\begin{array}{c}
\underline{\text {State of the economy}}\
\text {Boom}\
\text {Normal}\
\text {Recession}
\end{array}
\begin{array}{c}
\underline{\text {Probability}}\
.3\
.4 \
.3 
\end{array}
\begin{array}{c}
\underline{\text {Stock F}}\
65 \% \
14 \% \
-50 \%
\end{array}
\end{array}$
  
-If the risk-rate is 5.8 percent, what is the risk premium of Stock F?
A) 15.9%
B) 5.25%
C) 4.87%
D) 4.30%
E) 5.06%

-If the Risk-Rate Is 5