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Question
White Company stock has a beta of 2 and a required return of 23%, while Black Company stock has a beta of 1.0 and a required return of 14%. The standard deviation of returns for White Company is 10% more than the standard deviation for Black Company. The risk-free rate of return according to the CAPM isA) 4%.
B) 5%.
C) 6%.
D) impossible to determine with the information given.
Answer
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Related questions
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