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

Question 13

Question 13

Essay

The expected market return is 9 percent. The risk-free rate is 1 percent, and XYZ Co. has a beta of 1.4. XYZ's risk premium is:
A)8 percent.
B)11.2 percent.
C)12.2 percent.
D)10.3 percent

Correct Answer:

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