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The required rate of return on the Cosmos Corporation's common stock is 10%, the current real rate of return in the market is 1%, and

The required rate of return on the Cosmos Corporation's common stock is 10%, the current real rate of return in the market is 1%, and the inflation rate is 3%. In this case, the risk premium associated with Cosmos stock is A) 5%. B) 6%. C) 7%. D) 8%.

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