XOM Corporation has a beta of 27 If the market has a return
     XOM Corporation has a beta of 2.7. If the market has a return of 1 1% and the risk free rate is 3%, what is XOM\'s risk premium? O 8% O 24.6% O 15.4% O 21.6%  
  
  Solution
Answer is 8%
Beta = 2.7
 Market Return = 11%
 Risk-free Rate = 3%
Risk Premium = Market Return - Risk-free Rate
 Risk Premium = 11% - 3%
 Risk Premium = 8%

