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The Expected Return for a Stock,calculated Using the CAPM,is 25

Question 16

Multiple Choice

The expected return for a stock,calculated using the CAPM,is 25%.The risk free rate is 7.5% and the beta of the stock is 0.80.Calculate the implied return on the market.


A) 7.50%
B) 13.91%
C) 17.50%
D) 21.88%
E) 14.38%

Correct Answer:

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