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The two factor model on a stock provides a risk premium for exposure to market risk of 12%, a risk premium for exposure to silver commodity prices of 3.5% and a risk free rate of 4.0%. What is the expected return on the stock?

A. 11.6%

B. 13.0%

C. 15.3%

D. 19.5%

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9441194

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