Question
The common stock of Up-Towne Movers is selling for $33 a share and has a beta of 1.25. If the CAPM expected return is 15.5% and the market risk premium is 10.0%, what is the risk free rate of return?
 
Group of answer choices
2.0%
3.0%
12.5%
13.5%
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ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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