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Using the CAPM, Calculate the Expected Rate of Return for a Share

Question 9

Multiple Choice

Using the CAPM, calculate the expected rate of return for a share that has a beta of 2.3. The expected return on the market and risk-free rate are 6% and 5% respectively.


A) 2.3%.
B) 2.7%.
C) 7.3%.
D) 6.3%.

Correct Answer:

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