What is the risk premium for a stock where the risk free


1. Aryanna invests $45,000 today into an investment that earns 7% annually, but interest is compounded continuously. What is the future value of this investment 16 years from today?

a. $129,000

b. $143,000

c. $138,000

d. $131,500

e. $133,000

2. What is the risk premium for a stock where the risk free rate is 5.1%; the equity market risk premium is 5.0%; and the beta of the stock is 1.2.

A 11.1%

B 6.1%

C 6.0%

D 12.1%

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Financial Management: What is the risk premium for a stock where the risk free
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