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If the market risk premium is 8 percent, then according to the CAPM, the risk premium of a stock with a beta value of

If the market risk premium is 8 percent, then according to the CAPM, the risk premium of a stock with a beta value of 1.4 must be: O less than 12 percent. 12 percent. O The answer cannot be determined. O greater than 12 percent.

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