What is the market risk premium
Desreumaux Inc's stock has an expected return of 12.25%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium?
Answer
A. 5.80%
B. 5.95%
C. 6.09%
D. 6.25%
E. 6.40%
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