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The stock of ABC Corporation has a beta of 1.5. ABC Corporation earned an annual return of 14 percent during a period when the return

The stock of ABC Corporation has a beta of 1.5. ABC Corporation earned an annual return of 14 percent during a period when the return on the market portfolio was 12.5 percent. If the risk-free rate was 5 percent, did ABC Corporation outperform the market on a risk-adjusted basis?

Chapter 14. Cost of Capital. Retrieved from http://mmoore.ba.ttu.edu/Fin3320/LectureNotes/Chapter-14-Titman-2SlidePages.pdf(Links to an external site.)Links to an external site.

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