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The beta for Bob's Corporations common stock is 1.44. The annual stock market risk premium is 6.8%, and the risk-free interest rate is 2.6% per
The beta for Bob's Corporations common stock is 1.44. The annual stock market risk premium is 6.8%, and the risk-free interest rate is 2.6% per year. According to the security market line (SML) technique, what annual average rate of return is expected on the stock market as a whole? [Preceding question 10 was based on the same general information.]
A. 4.20%
B. 6.80%
C. 9.40%
D. 4.72%
E. 13.54%
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