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The Expected Market Return Is 16 Percent

Question 33

Multiple Choice

The expected market return is 16 percent. The risk-free rate of return is 7 percent, and BC Co. has a beta of 1.1. Their required rate of return is


A) 17.6 percent.
B) 16.0 percent.
C) 16.9 percent.
D) 23.0 percent.

Correct Answer:

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