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Daniel's Enterprises Has a Beta of 1

Question 26

Multiple Choice

Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 %. The stock is currently selling for $12 a share. The overall stock market has an 11 % rate of return and a risk premium of 8 %. What is the expected rate of return on Daniel's Enterprises stock?


A) 10.00 %
B) 15.85 %
C) 16.67 %
D) 18.84 %
E) 19.06 %

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