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QUESTION 6 Market Risk Premium (or MRP) can be calculated as: a the difference between the required return and the expected market return. b. the

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QUESTION 6 Market Risk Premium (or MRP) can be calculated as: a the difference between the required return and the expected market return. b. the difference between the expected market return and the risk-free rate. c. the difference between the beta and the risk-free rate. d. the difference between the expected market return and the beta. QUESTION 7 When calculating CAPM, what do we use in place of the risk-free rate? a. 10-year Treasury Bond Return b. Yield to Maturity c. Market Risk Premium d. Beta

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