What is the risk premium for Stock NVDA, given it has a beta of 0.75, while...

What is the risk premium for Stock NVDA, given it has a beta of 0.75, while the market portfolio is yielding 12% and treasury bills are yielding 2%?

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Expert Solution

Dear student thank-you for using Chegg.

Please find the answer below.

Statement showing computation:

Return on market portfolio= 12%

Risk free rate= 2%

Risk premium= Market return-risk free rate

Risk premium= 12-2= 10

Risk premium= 10%

jeff jeffy answered 2 years ago

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