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    Exam 12: Return, Risk, and the Security Market Line
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    A Stock Has a Beta of 1
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A Stock Has a Beta of 1

Question 18

Question 18

Multiple Choice

A stock has a beta of 1.58 and an expected return of 16.2%. The risk-free rate is 3.8%. What is the market risk premium?


A) 7.85%
B) 10.01%
C) 11.72%
D) 12.50%
E) 13.40%

Correct Answer:

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