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Given the Capital Asset Pricing Model, a Security with a Beta

Question 19

Multiple Choice

Given the capital asset pricing model, a security with a beta of 1.5 should return ________, if the risk-free rate is 3% and the market return is 11%.


A) 16.5%
B) 14.0%
C) 14.5%
D) 15.0%

Correct Answer:

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