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    Exam 7: Introduction to Risk and Return
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    Assume the Following Data: Risk-Free Rate = 4
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Assume the Following Data: Risk-Free Rate = 4

Question 69

Question 69

Multiple Choice

Assume the following data: Risk-free rate = 4.0 percent; average risk premium = 7.7 percent. Calculate the required rate of return for the risky asset.


A) 5.6 percent
B) 7.6 percent
C) 11.7 percent
D) 30.8 percent

Correct Answer:

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