If the market risk premium is 8 then according to the capm


If the market risk premium is 8%, then according to the CAPM, the risk premium of a stock with beta value of 1.7 must be:

A. less than 12%.

B. 12%.

C. greater than 12%.

D. cannot be determined.

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Financial Management: If the market risk premium is 8 then according to the capm
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