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Merck stock has a beta of 1.50. The risk-free rate of return is 2.2 percent and the market risk premium is 7.92 percent. What is
Merck stock has a beta of 1.50. The risk-free rate of return is 2.2 percent and the market risk premium is 7.92 percent. What is the expected rate of return on this stock? A) 14.08 percent B) 8.35 percent C) 10.78 percent D) 13.21 percent E) 16.22 percent Larry Page Corp. offers 9 percent coupon bonds with semiannual payments and a yield to maturity of 5.94 percent. The bonds mature in 10 years. What is the market price per bond if the face value is $1,000 ? A) $1,112.71 B) $913.48 C) $1,228.26 D) $975.93 E) $989.70
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