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Question
Wendy purchased 800 shares of Robotics stock at $3 per share on 1/1/09. Wendy sold the shares on 12/31/09 for $3.45. Robotics stock has a beta of 1.3, the risk-free rate of return is 3%, and the market risk premium is 8%. The required return on Robotics stock isA) 13.4%.
B) 16.5%.
C) 17.6%.
D) 21.1%.
Answer
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