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%

 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% S

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