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Using Solnik's (1974)ICAPM,what Is the Expected Return on an Australian 23.0% 23.0\%

Question 25

Multiple Choice

Using Solnik's (1974) ICAPM,what is the expected return on an Australian security with a world market beta of 1.2 if the Australian risk-free rate is 7%,the world risk-free rate is 3.5% and the expected return on the world market portfolio is 22%?


A) 23.0% 23.0\%
B) 25.2% 25.2 \%
C) 25.7% 25.7 \%
D) 29,20% 29,20\%

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