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Problem:

Company Risk Premium A company has a beta of 4.5. If the market return is expected to be 14 percent and the risk-free rate is 7 percent, what is the company's risk premium?

Note: Be sure to show how you arrived at your answer.

7.0%

25.5%

31.5%

38.5%

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166524

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