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    Exam 12: Return, Risk, and the Security Market Line
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    Farm Tractors, Inc
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Farm Tractors, Inc

Question 68

Question 68

Multiple Choice

Farm Tractors, Inc., stock has a beta of 1.12 and an expected return of 12.8%. The risk-free rate is 3.84%. What is the market rate of return?


A) 6.67%
B) 8.90%
C) 9.08%
D) 11.84%
E) 12.63%

Correct Answer:

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