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    The Expected Return on Karol Co
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The Expected Return on Karol Co

Question 78

Question 78

Multiple Choice

The expected return on Karol Co. stock is 16.5 percent. If the risk-free rate is 5 percent and the beta of Karol Co is 2.3, then what is the risk premium on the market?


A) 2.5%
B) 5.0%
C) 7.5%
D) 10.0%

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