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What Is the Expected Return for Asset X If It

Question 89

Multiple Choice

What is the expected return for asset X if it has a beta of 1.5, the expected market return is 15 percent, and the expected risk-free rate is 5 percent?


A) 5.0%
B) 7.5%
C) 15.0%
D) 20.0%

Correct Answer:

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