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The Rate on Six-Month T-Bills Is Currently 5

Question 65

Multiple Choice

The rate on six-month T-bills is currently 5%. Andvark Company stock has a beta of 1.69 and a required rate of return of 15.4%. According to CAPM, determine the return on the market portfolio.


A) 11.15%
B) 6.15%
C) 17.07%
D) 14.11%

Correct Answer:

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