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Using Solnik's (1974)ICAPM,what Is the Expected Return on an Australian 7.80% 7.80 \%

Question 8

Multiple Choice

Using Solnik's (1974) ICAPM,what is the expected return on an Australian security with a world market beta of 0.78 if the Australian risk-free rate is 5.37%,the world risk-free rate is 1.7% and the expected return on the world market portfolio is 13.19%?


A) 7.80% 7.80 \%
B) 10.66% 10.66 \%
C) 11.47% 11.47 \%
D) 14.33% 14.33 \%

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