View the step-by-step solution to:


If you have a beta of 4, does it imply a stock has a risk premium of 4%? If yes or No could you explain your

answer please?

Top Answer

No , beta indicate the rate of volatility of the shares in the market. A risk premium on the other hand is indicating the... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question