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Zacher Co'S Stock Has a Beta of 1

Question 19

Multiple Choice

Zacher Co.'s stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%.What is the firm's required rate of return?


A) 11.36%
B) 11.65%
C) 11.95%
D) 12.25%
E) 12.55%

Correct Answer:

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