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What is the risk premium for XYZ stock if its expected return is 10.23%, the expected inflation rate is 3.17% and the risk-free return is
What is the risk premium for XYZ stock if its expected return is 10.23%, the expected inflation rate is 3.17% and the risk-free return is 4.98%
A. 5.25% (Plus or minus 0.05 percentage points)
B. 1.86% (Plus or minus 0.05 percentage points)
C. 8.47% (Plus or minus 0.05 percentage points)
D. 7.06% (Plus or minus 0.05 percentage points)
E. None of the above is within 0.05 percentage points is the correct answer
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