If the market risk premium is 8 percent, then according to the CAPM, the risk premium of a stock with a beta value of 1 4 must be O less than 12 percent 12 percent O The answer cannot be determined O greater than 12 percent If the market risk premium is 8 percent, then according to the CAPM, the r...

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Corporate Finance A Focused Approach

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Authors: Michael C. Ehrhardt, Eugene F. Brigham

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