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    Fundamentals of Investing Study Set 2
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    The Markets in General Are Paying a 2% Real Rate
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The Markets in General Are Paying a 2% Real Rate

Question 115

Question 115

Multiple Choice

The markets in general are paying a 2% real rate of return.Inflation is expected to be 3%.ABC stock commands a 6% risk premium.What is the expected rate of return on ABC stock?


A) 2%
B) 5%
C) 8%
D) 11%

Correct Answer:

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