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The Expected Market Return Is 16 Percent

Question 39

Multiple Choice

The expected market return is 16 percent.The risk-free rate of return is 7 percent,and BC Co.has a beta of 1.1.Their required rate of return is

A) 17.6 percent.
B) 16.0 percent.
C) 16.9 percent.
D) 23.0 percent.

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