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Consider the following information for the stocks, Stork A. Suck B, Stock Stock Stock A Stock B Stock C Expected Return 10% 10 12 Standard

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Consider the following information for the stocks, Stork A. Suck B, Stock Stock Stock A Stock B Stock C Expected Return 10% 10 12 Standard Duviation 20% 20 20 Bola 1.0 1.0 1.4 Fund Q has one third of its funds invested in each of the three stocks. The risk free rate is 55 percent, and the market is in equilibrium (That is required returns equal expected returns.) What is the market risk premium? 5.0% 8.596 4.0% 4.5% 10.0%

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