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



Risk Free rate (Rf)




Expected market return (Rm)




Risk Premium




(b - a) or (Rm - Rf)



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

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