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The Reward-To-Risk Ratio Is 6

Question 63

Multiple Choice

The reward-to-risk ratio is 6.0% and the risk-free rate is 1.4%. What is the expected return on a risky asset if the beta of that asset is 1.30?


A) 8.23%
B) 8.40%
C) 9.20%
D) 10.23%
E) 11.30%

Correct Answer:

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