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You Are Considering an Investment in First Allegiance Corp

Question 43

Multiple Choice

You are considering an investment in First Allegiance Corp.The firm has a beta of 1.6.Currently,U.S.Treasury bills are yielding 2.75% and the expected return for the S & P 500 is 14%.What rate of return should you expect for your investment in First Allegiance?


A) 11.15%
B) 15.39%
C) 16.75%
D) 20.75%

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