What is the expected market risk premium

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Reference no: EM132780432

Question - Suppose Apple stock's expected return is 9.06% and Disney stock's expected return is 4.86%. Assume the capital asset pricing model holds and Apple stock's beta is greater than Disney stock's beta by 0.21. What is the expected market risk premium?

a. 20 percent

b. 12.6 percent

c. 9.5 percent

d. 13.92 percent

Reference no: EM132780432

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