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A Stock Has an Expected Return of 13

Question 69

Multiple Choice

A stock has an expected return of 13.6 percent and a beta of 1.10. If the risk-free rate is 5.4 percent, what is the expected return of the market?

A) 12.60%
B) 13.05%
C) 12.85%
D) 12.59%
E) 7.45%

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