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Stock a Has a Required Return of 18% and a Beta

Question 60

Multiple Choice

Stock A has a required return of 18% and a beta of 1.4. The expected market return is 14%. What is the risk-free rate?

A) 0.6%
B) 1.2%
C) 3.0%
D) 4.0%
E) 6.0%

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