Question 7 (1 point) Gungan Inc. has an expected return of 12% and a beta of 1.80. The risk-free rate is 1%. What is the MARKET RISK PREMIUM?
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Given that the risk-free rate is 1% and the expected return of Gungan Inc. is 12%, we can calculate the market risk premium as follows: Market Risk Premium = Expected Return - Risk-Free Rate = 12% - 1% = 11% Show more…
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