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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
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    If the Beta of Microsoft Is 1
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If the Beta of Microsoft Is 1

Question 2

Question 2

Multiple Choice

If the beta of Microsoft is 1.13, risk-free rate is 3% and the market risk premium is 8%, calculate the expected return for Microsoft.


A) 12.04%
B) 15.66%
C) 13.94%
D) 8.65%

Correct Answer:

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