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    Exam 10: Risk and Return Lessons From Market History
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    If the Expected Return on the Market Is 11
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If the Expected Return on the Market Is 11

Question 42

Question 42

Multiple Choice

If the expected return on the market is 11.5%,then using the historical risk premium on large stocks of 8.6%,the current risk-free rate is:


A) 2.9%
B) 7.4%
C) 8.4%
D) 10.6%
E) 12.6%

Correct Answer:

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