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ABC Inc's stock has an expected return of 10.75%, a beta of 1.0, and is in equilibrium. If the risk-free rate is 5.00%, what is

ABC Inc's stock has an expected return of 10.75%, a beta of 1.0, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium?

1.

4.28%

2.

4.55%

3.

5.75%

4.

4.32%

5.

5.15%

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