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Lear Corp Has an Expected Excess Return of 8% Next Year

Question 10

Multiple Choice

Lear Corp. has an expected excess return of 8% next year. Assume Lear's beta is 1.43. If the economy booms and the stock market beats expectations by 5%, what was Lear's actual excess return?


A) 7.15%
B) 13%
C) 15.15%
D) 18.59 %

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