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A Company Has a Beta of 2

Question 94

Multiple Choice

A company has a beta of 2.91. If the market return is expected to be 16 percent and the risk-free rate is 4 percent, what is the company's risk premium?


A) 11.64 percent
B) 12.00 percent
C) 22.91 percent
D) 34.92 percent

Correct Answer:

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