Exam (elaborations)
AWMA PRACTICE EXAM II
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- Institution
Using the capital asset pricing model, what is the expected return for a stock where its beta is 1.20, the risk-free rate is 4%, and the market rate of return is 10%? (Set calculator for four decimal places to reduce rounding error.) A)11.2% B)8.8% C)10.1% D)16.0% - Answer-A .04 + 1.2 (.10 �...
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