The standard deviation of market returns is 15. The return of stock X is 25%. The riskless rate of interest is 5%. The risk premium of the X stock is:
CS Executive · Financial and Strategic Management · PYQS · December 2020
The standard deviation of market returns is 15. The return of stock X is 25%. The riskless rate of interest is 5%. The risk premium of the X stock is:
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Financial Management
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