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Beta is a measure of A. market risk. B. operating risk. C. idiosyncratic risk. D. firm specific risk. The beta for Fike stock is 1.35.

Beta is a measure of

A.

market risk.

B.

operating risk.

C.

idiosyncratic risk.

D.

firm specific risk.

The beta for Fike stock is 1.35. What is the required return on equity for Fike if the risk-free rate is 2.0% and the expected return on the market is 7.0%?

A.

6.10%

B.

8.75%

C.

10.35%

D.

11.15%

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