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    Exam 16: Why Diversify
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    The Difference Between the Expected Return on a Stock with a Beta
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The Difference Between the Expected Return on a Stock with a Beta

Question 10

Question 10

Multiple Choice

The difference between the expected return on a stock with a beta of 1.0 and the risk free rate is the


A) alpha.
B) market risk premium.
C) undiversifiable return.
D) expected return.

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