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Suppose That Over the Last 20 Years,company XYZ Has Averaged

Question 20

Multiple Choice

Suppose that over the last 20 years,company XYZ has averaged a return of 13%.Over the same period,the Treasury bond rate has averaged 4%.The current estimate of the Treasury bond rate is 6.5%.Using the historical approach,what is the estimate of XYZ's expected return.


A) 13.0%
B) 16.5%
C) 15.5%
D) 19.5%

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