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EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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# General Account

Transcribed Image Text:The stock of Delta Electrical, Inc., has a beta of 0.98. The market risk
premium is 9 percent and the risk-free rate is 2.4 percent. What is the
expected return on this stock?
A) 8.91 percent
B) 9.43 percent
C) 10.67 percent
D) 11.22 percent
E) 13.22 percent
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