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The Risk-Free Rate of Return Is 3

Question 69

Multiple Choice

The risk-free rate of return is 3.9 percent and the market risk premium is 6.2 percent.What is the expected rate of return on a stock with a beta of 1.21?


A) 10.92 percent
B) 11.40 percent
C) 12.22 percent
D) 12.47 percent
E) 12.79 percent

Correct Answer:

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