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A Stock Has an Expected Return of 14

Question 60

Multiple Choice

A stock has an expected return of 14.3 percent, the risk-free rate is 3.9 percent, and the market risk premium is 7.8 percent.What must the beta of this stock be?


A) 1.67
B) .94
C) 1.08
D) 1.21
E) 1.33

Correct Answer:

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