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The Expected Return of the Market Is 12

Question 93

Multiple Choice

The expected return of the market is 12.90 percent. A stock has an expected return of 14.90 percent and a beta of 1.25. What is the risk-free rate?

A) 6.3%
B) 5.4%
C) 4.9%
D) 5.8%
E) 6.1%

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