A stock has an expected return of 12.91 percent. The beta of the stock is 1.2 and the risk-free rate is 5 percent. What is the market risk premium? (Answer in a percentage, but do not include the % sign and round to two decimal place, i.e., 18.31)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 12P: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average...
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A stock has an expected return of 12.91 percent. The beta of the stock is 1.2 and the risk-free rate is 5 percent. What is the market risk premium?
(Answer in a percentage, but do not include the % sign and round to two decimal place, i.e., 18.31)

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