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Problem:

If the market risk premium is (rm-rf) is 8%, the according to the CAPM, the risk premium of a stock with beta value of 1.7 must be:

A) Less than 12%

B) 12%

C) Greater than 12%

D) Cannot be determined

Note: Please provide full description.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147613

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