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BE SURE TO SAVE YOUR ANSWERS FREQUENTLY. The beta for St. Charles Corporation's common stock is .84. The annual stock market risk premium is 6.2%,

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BE SURE TO SAVE YOUR ANSWERS FREQUENTLY. The beta for St. Charles Corporation's common stock is .84. The annual stock market risk premium is 6.2%, and the risk- free interest rate is 2.4% per year. According to the security market line (SML) technique, what annual average rate of return is expected on the stock market as a whole? [Preceding question 11 was based on the same general information.] A. 8.60% B. 7.22% O C. 3.80% D. 6.20% E. 7.38%

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