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Suppose You Observe the Following Situation

question 36

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Suppose you observe the following situation: Suppose you observe the following situation:   Assume the capital asset pricing model holds and stock A's beta is greater than stock B's beta by 0.21.What is the expected market risk premium? A)  8.8 percent B)  9.5 percent C)  12.6 percent D)  17.9 percent E)  20.0 percent
Assume the capital asset pricing model holds and stock A's beta is greater than stock B's beta by 0.21.What is the expected market risk premium?


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