Use the following information to answer the following question(s). Firm A beta1.25, Firm B beta =...
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Use the following information to answer the following question(s). Firm A beta1.25, Firm B beta = 0.6, Market return = 10%, Risk free rate = 2% 8) The market risk premium is: A) 8%. B) 4%. C) 6%. D) 2%. 9) Firm A's expected return is: A) 8%. B) 6%. C) 10%. D) 12% Use the following information to answer the following question(s). Firm A beta1.25, Firm B beta = 0.6, Market return = 10%, Risk free rate = 2% 8) The market risk premium is: A) 8%. B) 4%. C) 6%. D) 2%. 9) Firm A's expected return is: A) 8%. B) 6%. C) 10%. D) 12%
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