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A stock has an expected return of 10%. Its beta is 1.3 and the risk-free rate is 5.00%. What is the market risk premium? 3.85%

A stock has an expected return of 10%. Its beta is 1.3 and the risk-free rate is 5.00%. What is the market risk premium?

3.85% 5.01% 4.32% 7.12%

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