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Which one of the following should earn the highest risk premium based on CAPM? . A. Stock with a beta of .74 B. Zero Beta

Which one of the following should earn the highest risk premium based on CAPM?

.

A.

Stock with a beta of .74

B.

Zero Beta Asset

C.

Portfolio with a beta of 1.00

D.

Stock with a beta of 1.38

E.

U.S. Treasury bill

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