You've observed the following returns on Crash-n-Burn Computer's
stock over the past five years: 10 percent, 13 percent, 19
percent, −4 percent, and 15 percent. Suppose the T-bill rate
was 3.1 percent. Based on this information, what was the risk
premium?
A.
8.8 percent
B.
6.2 percent
C.
7.5 percent
D.
10.6 percent