22. Assume that the risk-free rate is 5% and that the rate of return on a balanced portfolio of common stocks is 9%. If a firm has a beta coefficient of 2, then its risk premium is: А. 18% В. 10% С. 8% D. 4%

22. Assume that the risk-free rate is 5% and that the rate of return on a balanced portfolio of common stocks is 9%. If a firm has a beta coefficient of 2, then its risk premium is: А. 18% В. 10% С. 8% D. 4%

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: The Basic Tools Of Finance

Section: Chapter Questions

Problem 5QCMC

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Question

22. Assume that the risk-free rate is 5% and that the rate of return on a balanced portfolio of
common stocks is 9%. If a firm has a beta coefficient of 2, then its risk premium is:
А. 18%
В. 10%
С. 8%
D. 4%

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