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  3. Study Set
    Corporate Financial Management
  4. Exam
    Exam 8: The Capital Asset Pricing Model and Multi-Factor Models
  5. Question
    Asset P Has a Beta of 0
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Asset P Has a Beta of 0

Question 6

Question 6

Multiple Choice

Asset P has a beta of 0.9. The risk- free rate of return is 8%, while the return on the market portfolio of assets is 14%. The asset's required rate of return is


A) 13.4%
B) 5.4%
C) 10%
D) 6%

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