The expected return on karolco stock is 165 percent if the

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The expected return on KarolCo. stock is 16.5 percent. If the risk-free rate is 5 percent and the beta of KarolCo is 2.3, then what is the risk premium on the market assuming CAPM is true?

a. 2.5%

b. 5.0%

c. 7.5%

d. 10.0%

Reference no: EM13392821

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