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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 13: Return, Risk, and the Security Market Line
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    The Expected Return on Joseph's Restaurant's Stock Is 14
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The Expected Return on Joseph's Restaurant's Stock Is 14

Question 138

Question 138

Multiple Choice

The expected return on Joseph's Restaurant's stock is 14.25% while the expected return on the market is 12.38%. The stock's beta is 1.18. What is the risk-free rate of return?


A) 1.99%
B) 2.04%
C) 2.48%
D) 3.23%
E) 3.68%

Correct Answer:

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