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Currently, the Expected Return on the Market Is 12

Question 53

Multiple Choice

Currently, the expected return on the market is 12.5% and the required rate of return for Alpha, Inc. is 12.5%. Therefore, Alpha's beta must be


A) less than 1.0.
B) greater than 1.0.
C) equal to 1.0.
D) unknown based on the information provided.

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