genesis9139 genesis9139

16-12-2020
Business

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What is the risk premium for a company that has a yield rate of 6.30% when the risk-free rate is 4.93%?

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topeadeniran2 topeadeniran2

18-12-2020

Answer: 1.37%

Explanation:

The risk premium for a company that has a yield rate of 6.30% when the risk-free rate is 4.93% will simply be calculated by subtracting the risk free rate from the yield rate. This will then be:

= 6.30% - 4.93%

= 1.37%

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