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ABC Stock Has a Beta That Is 13 Percent Higher

Question 64

Multiple Choice

ABC stock has a beta that is 13 percent higher than the overall market beta.The risk-free rate is 3.1 percent,and the market rate of return is 10.6 percent.What is the company's cost of equity?


A) 12.27%
B) 10.91%
C) 11.58%
D) 15.48%
E) 16.08%

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