Compute the risk premium for the stock of Omega Tools if the risk free rate is 6%, the expected market return is 12%, and Omega's stock has a beta of .8.
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Omega Tools
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a
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Risk Free rate (Rf)
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6%
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b
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Expected market return (Rm)
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12%
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c
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Risk Premium
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6%
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(b - a) or (Rm - Rf)
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