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    Principles of Corporate Finance Study Set 3
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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
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    If the Market Risk Premium Is 8 Percent, Then According
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If the Market Risk Premium Is 8 Percent, Then According

Question 66

Question 66

Multiple Choice

If the market risk premium is 8 percent, then according to the CAPM, the risk premium of a stock with beta value of 1.7 must be


A) less than 12 percent.
B) 12 percent.
C) greater than 12 percent.
D) The answer cannot be determined.

Correct Answer:

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