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Assume That the Risk-Free Rate of Return Is 4%,and the Expected

Question 17

Multiple Choice

Assume that the risk-free rate of return is 4%,and the expected return on the market portfolio is 10%.If the expected return of ABC is 12% the firm's beta calculate using the Capital Asset Pricing Model (CAPM) .


A) 1
B) 1.25
C) 1.33
D) 1.5

Correct Answer:

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