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The Expected Return on HiLo Stock Is 13

Question 120

Multiple Choice

The expected return on HiLo stock is 13.69% while the expected return on the market is 11.5%. The beta of HiLo is 1.3. What is the risk-free rate of return?


A) 2.8%
B) 3.1%
C) 3.7%
D) 4.2%
E) 4.5%

Correct Answer:

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