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The Common Stock of Linear Technologies Has a Beta of 1.72

Question 202

Multiple Choice

The common stock of Linear Technologies has a beta of 1.72. The risk-free rate of return is 4.3% and the market rate of return is 11.2%. What is the risk premium on Linear Technologies' stock?


A) 6.90%
B) 7.40%
C) 8.67%
D) 11.87%
E) 16.17%

Correct Answer:

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