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Potash Corp stock has a beta of 1.1, while Tim Horton's stock has a beta of 1.4. The risk-free rate is 1.9%, and the expected return on a portfolio with 30% weight in Potash and the remainder in Tim Horton's
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Potash Corp stock has a beta of 1.1, while Tim Horton's stock has a beta of 1.4. The risk-free rate is 1.9%, and the expected return on a portfolio with 30% weight in Potash and the remainder in Tim Horton's is 9.76%. What is the market risk premium?

a) 7.2%
b) 7%
c) 6.9%
d) 7.9%
e) 6%

User Jytug
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Answer:

7.2%

Step-by-step explanation:

User Gaz
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