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    Financial Management Theory and Practice Study Set 1
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    Exam 7: Risk, Return, and the Capital Asset Pricing Model
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    The Real Risk-Free Rate Is 2%,the Expected Inflation Rate Is
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The Real Risk-Free Rate Is 2%,the Expected Inflation Rate Is

Question 136

Question 136

Multiple Choice

The real risk-free rate is 2%,the expected inflation rate is 3.00%,the market risk premium is 4.70%,and Kohers Enterprises has a beta of 1.10.What is the required rate of return on Kohers' stock?


A) 9.43%
B) 9.67%
C) 9.92%
D) 10.17%

Correct Answer:

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