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The common stock of Jensen Shipping has a risk premium of 8.50 percent. What is the market risk-premium if the company's beta is 0.85? What

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The common stock of Jensen Shipping has a risk premium of 8.50 percent. What is the market risk-premium if the company's beta is 0.85? What is expected return on the market if the risk-free return is 2.00 percent? Multiple Choice Risk premium is 9.70 percent; Market expected return is 7.70 percent Risk premium is 10.75 percent; Market expected return is 8.75 percent Risk premium is 10.00 percent; Market expected return is 12.00 percent Risk premium is 10.50 percent, Market expected return is 8.50 percent Risk premium is 7.225 percent; Market expected return is 9.225 percent

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