The expected return on the market for next period is 11 percent. The risk free rate of return is 4 percent, and Alpha Company has a beta of 1.1. The market risk premium is
A) 7.7 percent.
B) 7 percent.
C) 11 percent.
D) 12.1 percent.

Name: The expected return on the market for next period is 11 percent. The risk free rate of return is 4 percent, and Alpha Company has a beta of 1.1. The market risk premium is A) 7.7 percent. B) 7 percent. C) 11 percent. D) 12.1 percent.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

The Answer is B

The Expected Return on the Market for Next Period Is