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On-Line Broker Swab-Qtips Has a Beta of 1

Question 46

Multiple Choice

On-line broker Swab-Qtips has a beta of 1.1,and its market return and risk-free rates are 15% and 5%,respectively.What is Swab's cost of equity?


A) 18%
B) 10%
C) 25%
D) 16%
E) 26%

Correct Answer:

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