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The Markets in General Are Paying a 1% Real Rate

Question 49

Multiple Choice

The markets in general are paying a 1% real rate of return. Inflation is expected to be 3%. RJH stock commands an 8% risk premium. What is the expected rate of return on RJH stock?


A) 1%
B) 4%
C) 9%
D) 12%

Correct Answer:

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