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What is the market risk premium implied by the following numbers? Assume the GE stock is priced in equilibrium. Expected rate of return for GE:

What is the market risk premium implied by the following numbers? Assume the GE stock is priced in equilibrium. Expected rate of return for GE: .114 Risk-free rate: .05 Stock beta for GE: .8

Select one: a. .04 b. .06 c. .10 d. .08

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