A stock has a return of 13.2 percent, and the risk-free rate is 4.6 percent. What is the risk premium for this stock?
A) 4.6%
B) 6.4%
C) 8.6%
D) 13.2%
E) 17.8%

Name: A stock has a return of 13.2 percent, and the risk-free rate is 4.6 percent. What is the risk premium for this stock? A) 4.6% B) 6.4% C) 8.6% D) 13.2% E) 17.8%
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Question

Quizplus · Accepted Answer

The risk premium is calculated by subtracting the risk-free rate from the total return of the stock. Therefore, 13.2% - 4.6% = 8.6%.

A Stock Has a Return of 13