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    Fundamentals of Corporate Finance Study Set 24
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    Exam 12: Risk, Return, and Capital Budgeting
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    Determine the Market Risk Premium If the Risk Free Rate
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Determine the Market Risk Premium If the Risk Free Rate

Question 53

Question 53

Multiple Choice

Determine the market risk premium if the risk free rate is 2%, the company's Beta is 1.3 and its expected return is 11%.


A) 9.92%
B) 8.92%
C) 7.92%
D) 6.92%

Correct Answer:

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