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The Expected Return on Justus, Inc

Question 96

Multiple Choice

The expected return on Justus, Inc. stock is 15.63% while the expected return on the market is 12.4%. The beta of Justus's stock is 1.48. What is the risk-free rate of return?


A) 3.97%
B) 4.20%
C) 4.68%
D) 5.21%
E) 5.67%

Correct Answer:

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