Multiple Choice
Potash Corp stock has a beta of 1.1,while Tim Horton's stock has a beta of 1.4.The risk-free rate is 1.9%,and the expected return on a portfolio with 30% weight in Potash and the remainder in Tim Horton's is 9.76%.What is the market risk premium?
A) 7%
B) 7.9%
C) 6%
D) 6.9%
E) 7.2%
Correct Answer:
Verified
Correct Answer:
Verified
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