Calculating risk premium, Suppose if WalMart has a beta of

Calculating risk premium

Reference no: EM1373108

Suppose if WalMart has a beta of 1.1, current risk-free rate is 3.5%, average risk free rate over the last 70 years is 3.2 percent, and the expected return on the stock market is 12.3 percent, calculate Wal-Mart's risk premium?

[a] 8.8%
[b] 9.1%
[c] 9.7%
[d] 13.2%

Reference no: EM1373108

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