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The Reward-To-Risk Ratio Is 7

Question 35

Multiple Choice

The reward-to-risk ratio is 7.0 percent and the risk-free rate is 4.4 percent.What is the expected return on a risky asset if the beta of that asset is 1.10?


A) 7.00 percent
B) 12.00 percent
C) 12.02 percent
D) 12.10 percent
E) 12.30 percent

Correct Answer:

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