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The Common Stock of United Industries Has a Beta of 1.34

Question 98

Multiple Choice

The common stock of United Industries has a beta of 1.34 and an expected return of 14.29 percent.The risk-free rate of return is 3.7 percent.What is the expected market risk premium?


A) 7.02 percent
B) 7.90 percent
C) 10.63 percent
D) 11.22 percent
E) 11.60 percent

Correct Answer:

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