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The expected return on a security, according to the CAPM, is 12.98%, the beta of the security is 1.52 and the risk-free rate is 1%.
The expected return on a security, according to the CAPM, is 12.98%, the beta of the security is 1.52 and the risk-free rate is 1%. What is the value of the risk premium?
a.
8.88%
b.
6.88%
c.
11.98%
d.
7.88%
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