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LSU S corporation's stock has a beta of 1.23. The risk free rate of return is 2.86% and the market rate of return is 11.47%.

  1. LSU S corporation's stock has a beta of 1.23. The risk free rate of return is 2.86% and the market rate of return is 11.47%. What is the amount of the risk premium on LSUS corporations stock?
    1. 10.59%
    2. 12.6%
    3. 12.3%
    4. 11.54%

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