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Oxxo's common stock has a risk premium of 4.25 percent. You estimate that the risk- free return is 5.00 percent, and that Oxxo's beta is

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Oxxo's common stock has a risk premium of 4.25 percent. You estimate that the risk- free return is 5.00 percent, and that Oxxo's beta is 0.5. Use this information to calculate the market's risk-premium and expected return. Multiple Choice Risk premium is 9.25 percent; Market expected return is 4.25 percent Risk premium is 8.50 percent Market expected return is 13.50 percent Risk premium is 8.20 percent; Market expected return is 3.20 percent Risk premium is 9.00 percent; Market expected return is 4.00 percent Risk premium is 2.025 percent; Market expected return is 7.025 percent

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