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borteleto borteleto
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Posts: 2477
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6 years ago
White Company stock has a beta of 2 and a required return of 23%, while Black Company stock has a beta of 1.0 and a required return of 14%. The standard deviation of returns for White Company is 10% more than the standard deviation for Black Company. The risk-free rate of return according to the CAPM is
A) 4%.
B) 5%.
C) 6%.
D) impossible to determine with the information given.
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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DeanaRayDeanaRay
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6 years ago
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This helped my grade so much Perfect
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