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Problem:

The required return on Beta stock is 14%. The risk-free rate of return is 4% and the real rate of return is 2%.

Required:

Question: How much are investors requiring as compensation for risk?

A) 8%

B) 10%

C) 12%

D) 14%

Note: Provide thorough explanation of the given question.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174278

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