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    Exam 9: Capital Market Theory and Asset Pricing Models
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    The Expected Market Return Is 16 Percent
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The Expected Market Return Is 16 Percent

Question 66

Question 66

Essay

The expected market return is 16 percent. The risk-free return is 7 percent, and BC Co. has a beta of 1.1. BC's required return is:
A)17.6 percent.
B)16.0 percent.
C)16.9 percent.
D)23.0 percent.

Correct Answer:

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