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The Market Has an Expected Return of 11

Question 52

Multiple Choice

The market has an expected return of 11.3% and a risky asset with a beta of 1.18 has an expected return of 13%. Based on this information, what is the pure time value of money?


A) 1.86%
B) 1.90%
C) 2.38%
D) 2.51%
E) 2.90%

Correct Answer:

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