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Suppose the risk-free rate is 1% and the markets risk premium is 7%. If a portfolio has a Beta of 1.2, what rate of return
Suppose the risk-free rate is 1% and the markets risk premium is 7%. If a portfolio has a Beta of 1.2, what rate of return would you expect on this portfolio?
Select one:
a. Cannot tell from the information given
b. 9.6%
c. 8.7%
d. 9.4%
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