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Zelo Stock Has a Beta of 1

Question 109

Multiple Choice

Zelo stock has a beta of 1.23.The risk-free rate of return is 2.86 percent and the market rate of return is 11.47 percent.What is the amount of the risk premium on Zelo stock?


A) 9.47 percent
B) 12.60 percent
C) 11.54 percent
D) 10.59 percent
E) 12.30 percent

Correct Answer:

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