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QUESTION 3 Suppose that the Kat Corporation over the past five years has had an average annual return of 7%. During that same period, the
QUESTION 3 Suppose that the Kat Corporation over the past five years has had an average annual return of 7%. During that same period, the average annual return for the stock market was 3% and the average annual return on U.S. Treasury bills was 1%. The beta of Kat Corporation is estimated to be 2. What was Kat Corporation's excess return over the five-year period? O 3% 4% O 5% 6%
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