Question

Over the past five years, Teen Clothing stock produced returns of 18.7, 5.8, 7.9, 10.8, and 11.6 percent, respectively. For the same five years, the risk-free rate 5.2, 3.4, 2.8, 3.4, and 3.9 percent, respectively. What is the arithmetic average risk premium on Teen Clothing stock for this time period?
A. 6.89 percent
B. 7.01 percent
C. 7.22 percent
D. 7.34 percent
E. 7.57 percent

Answer

This answer is hidden. It contains 96 characters.