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Alpha stock has a beta of 1.43. The risk-free rate of return is 3.5 percent and the market rate of return is 11 percent. What

Alpha stock has a beta of 1.43. The risk-free rate of return is 3.5 percent and the market rate of return is 11 percent. What is the amount of the risk premium on Alpha stock?

a. 10.73%

b. 7.50%

c. 5.50%

d. 8.77%

e. 5.24%

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