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    Alpha Stock Has a Beta of 1
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Alpha Stock Has a Beta of 1

Question 27

Question 27

Multiple Choice

Alpha stock has a beta of 1.29.The risk-free rate of return is 3.2 percent,and the market rate of return is 10.7 percent.What is the Alpha stock risk premium?


A) 7.24%
B) 9.30%
C) 7.59%
D) 8.77%
E) 9.68%

Correct Answer:

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