Compute the risk premium for the stock, Finance Basics

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. 

 

Omega Tools

     

a

Risk Free rate (Rf)

   

6%

b

Expected market return (Rm)

 

12%

c

Risk Premium

   

6%

 

(b - a) or (Rm - Rf)

     

 

Posted Date: 7/23/2012 2:11:40 AM | Location : United States







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