Question

Last year, ABC stock returned 11.4 percent, the risk-free rate was 3.2 percent, and the inflation rate was 2.8 percent. What was the risk premium on ABC stock?
A. 8.20 percent
B. 8.43 percent
C. 8.60 percent
D. 8.88 percent
E. 8.97 percent

Answer

This answer is hidden. It contains 47 characters.