The Common Stock of Linear Technologies Has a Beta of 1.72

question 202

Multiple Choice

The common stock of Linear Technologies has a beta of 1.72. The risk-free rate of return is 4.3% and the market rate of return is 11.2%. What is the risk premium on Linear Technologies' stock?

• A) 6.90%
• B) 7.40%
• C) 8.67%
• D) 11.87%
• E) 16.17%

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Algorithm

A set of rules or steps designed to solve a problem or perform a task, often used in computing and mathematics.

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Pertaining to or involving machinery or mechanical processes; also refers to being methodical or procedural in nature.

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