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A Company Has a Beta of 3

Question 18

Multiple Choice

A company has a beta of 3.25. If the market return is expected to be 14 percent and the risk-free rate is 5.5 percent, what is the company's required return?


A) 22.750 percent
B) 33.125 percent
C) 45.500 percent
D) 51.000 percent

Correct Answer:

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