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    Corporate Finance Study Set 3
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    Exam 3: Financial Decision Making and the Law of One Price
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    Use the Table for the Question(s)below
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Use the Table for the Question(s)below

Question 37

Question 37

Essay

Use the table for the question(s)below. Use the table for the question(s)below.   -Suppose that security C had a risk premium of 30%,describe what arbitrage opportunity exists and how you would exploit it.
-Suppose that security C had a risk premium of 30%,describe what arbitrage opportunity exists and how you would exploit it.

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Step #1 - Determine the risk-free rate
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