XOM Corporation has a beta of 2.7. If the market has a return of 11% and...

Question

Question

XOM Corporation has a beta of 2.7. If the market has a return of 11% and the risk free rate is 3%, what is XOM's risk premium?

8%

24.6%

15.4%

21.6%

business finance

Answer 1

Answer #1

risk premium = Market return - risk free rate

risk premium = 11% - 3%

risk premium = 8%

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Answer 2

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