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    Exam 2: Diversification and Risky Asset Allocation
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    What Is the Expected Return of a Stock with a Risk
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What Is the Expected Return of a Stock with a Risk

Question 17

Question 17

Multiple Choice

What is the expected return of a stock with a risk premium of 7.6 percent if the risk-free rate is 4.8 percent?


A) 12.4%
B) 13.1%
C) 11.3%
D) 2.8%
E) 11.7%

Correct Answer:

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