Netflix, Inc. has a beta of 3.71. If the market return is expected to be 10.40 percent and the risk-free rate is 3.40 percent, what is Netflix's risk premium? (Round your answer to 2 decimal places.)
Risk Premium = ( Market return - risk free rate ) * beta
= ( 10.40% - 3.40%) *3.71
= 25.97%
Hence the correct answer is 25.97%
Netflix, Inc. has a beta of 3.71. If the market return is expected to be 10.40...
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