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What Is the Expected Risk-Free Rate of Return If Asset

Question 17

Multiple Choice

What is the expected risk-free rate of return if Asset X, with a beta of 1.5, has an expected return of 20 percent, and the expected market return is 15 percent?


A) 5.0%
B) 7.5%
C) 15.0%
D) 22.5%

Correct Answer:

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