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    According to the CAPM, What Is the Market Risk Premium
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According to the CAPM, What Is the Market Risk Premium

Question 47

Question 47

Multiple Choice

According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%?


A) 4%
B) 4.8%
C) 6.6%
D) 8%

Correct Answer:

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