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HAW Inc Has an Estimated Beta of 0

Question 25

Multiple Choice

HAW Inc. has an estimated beta of 0.87. Given a forecasted market return of 9% and a T-bill rate 3%, using the index model and the adjusted beta, what is the forecasted return?


A) 11.7%
B) 10.2%
C) 8.5%
D) 7.8%

Correct Answer:

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