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Asset P Has a Beta of 0

Question 132

Multiple Choice

Asset P has a beta of 0.9. The risk-free rate of return is 8 percent, while the return on the market portfolio of assets is 14 percent. The asset's required rate of return is


A) 13.4 percent.
B) 6.0 percent.
C) 5.4 percent.
D) 10 percent.

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