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Calculate the Expected Return for C Inc

Question 35

Multiple Choice

Calculate the expected return for C Inc., which has a beta of 0.8 when the risk-free rate is 0.04 and you expect the market return to be 0.12.


A) 8.10 percent
B) 9.60 percent
C) 10.40 percent
D) 11.20 percent
E) 12.60 percent

Correct Answer:

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