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. Question 40 The market risk premium is 7.8 percent and the risk free rate is 3.1 percent. You invest $740,000 in a stock with
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Question 40 The market risk premium is 7.8 percent and the risk free rate is 3.1 percent. You invest $740,000 in a stock with a beta of 0.90. What is the expected value of your investment at the end of one year, assuming the capital asset pricing model is valid? O $794,242 $814,888 O $822,761 $791,948 O $806,600 Question 24 The common stock of Harper Co. has a beta of 0.67. The risk-free rate is 4% and the market rate of return is 12%. What is the expected rate of return on this stock? O 11% 9.25% 0.67% 10% 9.36%Step by Step Solution
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