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Nystrand Corporation's stock has an expected return of 13.25%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is

Nystrand Corporation's stock has an expected return of 13.25%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium?

Select the correct answer.

a. 6.60%

b. 6.40%

c. 6.45%

d. 6.50%

e. 6.55%

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