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    Essentials of Investments Study Set 1
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    Exam 7: Capital Asset Pricing and Arbitrage Pricing Theory
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    Consider the CAPM
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Consider the CAPM

Question 73

Question 73

Multiple Choice

Consider the CAPM. The risk-free rate is 6%, and the expected return on the market is 18%. What is the expected return on a stock with a beta of 1.3?


A) 6%
B) 15.6%
C) 18%
D) 21.6%

Correct Answer:

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