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If the Risk-Free Rate Is 7 Percent, the Expected Return

Question 73

Multiple Choice

If the risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13 percent, what is the beta of Security J?


A) 1.0
B) 1.5
C) 2.0
D) 2.5
E) 3.0

Correct Answer:

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