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    Corporate Financial Management
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    Exam 8: The Capital Asset Pricing Model and Multi-Factor Models
  5. Question
    Asset Y Has a Beta of 1
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Asset Y Has a Beta of 1

Question 19

Question 19

Multiple Choice

Asset Y has a beta of 1.2. The risk- free rate of return is 6%, while the return on the market portfolio of assets is 12%. The asset's market risk premium is


A) 10 %
B) 6.0%
C) 7.2%
D) 13.2%

Correct Answer:

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