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A Stock Has an Expected Return of 13

Question 72

Multiple Choice

A stock has an expected return of 13.74 percent.The return on the market is 12.68 percent,and the risk-free rate of return is 3.24 percent.What is the beta of this stock?


A) 0.658
B) 1.093
C) 1.402
D) 1.112
E) 1.780

Correct Answer:

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