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A year ago
If the market risk premium is 6% and the risk-free rate is 4%, then the expected return of investing in Ford Motor Company is closest to:
A) 10.0%
B) 16.2%
C) 17.1%
D) 20.6%
Textbook 
Corporate Finance: The Core
Edition: 4th
Authors:
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wrote...
A year ago
D
Explanation:  D) Return = .04 + 2.77(.06) = .2062
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