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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 269 times)

berenicecastro

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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


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braelync

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: D


berenicecastro

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

nyrave

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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