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Stock a Has a Required Return of 19

Question 85

Multiple Choice

Stock A has a required return of 19%. Stock B has a required return of 11%. Assume a risk-free rate of 4.75%. By how much does Stock A's risk premium exceed the risk premium of Stock B?


A) 3.25%
B) 6.25%
C) 8.00%
D) 7.00%

Correct Answer:

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