1 the current risk-free rate of return is 35 and the market, Ask an Expert

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1. The current risk-free rate of return is 3.5% and the market risk premium is 4%. If the beta coefficient associated with a firm’s stock is 1.7, what is the stock’s required rate of return?

4.0%

5.6%

8.1%

10.3%

13.0%

2. Which type of risk that is associated with investments can be diversified away under the right conditions?

Systematic risk

Market risk

Inflation risk

Idiosyncratic risk

More than one of these risks can be diversified away.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92722243

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