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The Stock of Big Joe's Has a Beta of 1

Question 64

Multiple Choice

The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent.The risk-free rate of return is 3.42 percent.What is the expected return on the market?


A) 7.60 percent
B) 8.04 percent
C) 9.30 percent
D) 12.72 percent
E) 12.16 percent

Correct Answer:

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