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FlavR Co Stock Has a Beta of 2

Question 84

Multiple Choice

FlavR Co stock has a beta of 2.0, the current risk-free rate is 2, and the expected return on the market is 9 percent. What is FlavR Co's cost of equity?


A) 11%
B) 13%
C) 16%
D) 20%

Correct Answer:

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