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    Principles of Investments
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    Exam 7: Capital Pricing and Arbitrage Pricing Theory
  5. Question
    Consider the CAPM
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Consider the CAPM

Question 29

Question 29

Multiple Choice

Consider the CAPM. The risk-free rate is 6% and the expected return on the market is 18%. What is the expected return on a share with a beta of 1.3?


A) 6%
B) 15.6%
C) 18%
D) 21.6%

Correct Answer:

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