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Assume that the risk - free rate ( rRFR ) is 5 % and the market risk premium ( rM - rRFR ) is 8

Assume that the risk

-

free rate

(

rRFR

)

5 %

and the market risk premium

(

-

rRFR

)

8 % .

Given this information, which of the following statements is CORRECT?

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