NAIMMCQ
Investment
The required rate of return on the Daisy Corporation's common stock is 11%, the current real rate of return in the market is 1%, and the market's risk-free rate of return is 4%. In this case, the risk premium associated with Daisy's stock is:
The required rate of return on the Daisy Corporation's common stock is 11%, the current real rate of return in the market is 1%, and the market's risk-free rate of return is 4%. In this case, the risk premium associated with Daisy's stock is:
The required rate of return on the Daisy Corporation's common stock is 11%, the current real rate of return in the market is 1%, and the market's risk-free rate of return is 4%. In this case, the risk premium associated with Daisy's stock is:
A) 5%.
B) 6%.
C) 8%.
D) 7%.
Answer: D