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    Amalgamated Aluminum Stock Has a Beta of 1
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Amalgamated Aluminum Stock Has a Beta of 1

Question 46

Question 46

Multiple Choice

Amalgamated Aluminum stock has a beta of 1.2.Today's market risk premium is 13%.Amalgamated Aluminum stockholders require a rate of return of 22%.What is the present risk-free rate?


A) 6.40%
B) 22.00%
C) 4.60%
D) 15.60%

Correct Answer:

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