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    Principles of Corporate Finance
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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
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    Suppose the Beta of Exxon-Mobil Is 0
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Suppose the Beta of Exxon-Mobil Is 0

Question 26

Question 26

Multiple Choice

Suppose the beta of Exxon-Mobil is 0.65,the risk-free rate is 4%,and the expected market rate of return is 14%.Calculate the expected rate of return on Exxon-Mobil.


A) 12.6%
B) 10.5%
C) 13.1%
D) 6.5%

Correct Answer:

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