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If the market risk premium is 8%, then according to the CAPM, the risk premium of a stock with beta value of 1.7 must be:
If the market risk premium is 8%, then according to the CAPM, the risk premium of a stock with beta value of 1.7 must be:
A. less than 12%.
B. 12%.
C. greater than 12%.
D. cannot be determined.
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