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The Return on the Market Portfolio Is Currently 12

Question 15

Multiple Choice

The return on the market portfolio is currently 12%.Mobile Phone Corporation stockholders require a rate of return of 30% and the stock has a beta of 3.2.According to CAPM,determine the risk-free rate.


A) 9.80%
B) 6.50%
C) 4.64%
D) 3.82%

Correct Answer:

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