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A Stock Has a Beta of 0

Question 16

Multiple Choice

A stock has a beta of 0.95, the expected return on the market is 13.25, and the risk-free rate is 3.66.What must the expected return on this stock be?


A) 10.59 percent
B) 39.02 percent
C) 14.26 percent
D) 19.86 percent
E) 12.77 percent

Correct Answer:

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