Author Question: Asset y has a beta of 1.2. The risk-free rate of return is 4 percent, while the return on the market ... (Read 125 times)

berenicecastro · **on:** Jul 10, 2018

Asset y has a beta of 1.2. The risk-free rate of return is 4 percent, while the return on the market portfolio of assets is 10 percent. What is the market risk premium?

A) 6
B) 10
C) 11.2
D) 13.2
E) 8

Question 2

The Security Market Line ________.

A) is curvilinear and upward sloping
B) is curvilinear and downward sloping
C) may curve up or down depending upon market conditions
D) is a straight line