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A stock has an expected return of 7.50% and a beta of 1. The risk-free interest rate is 4.50%. What is the market risk premium?

A stock has an expected return of 7.50% and a beta of 1. The risk-free interest rate is 4.50%. What is the market risk premium? a) 7.50% b) 3.50% c) 3.00% d) 1.00%

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