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The required return on XYZ stock is 14%. The risk-free rate of return is 4% and...

The required return on XYZ stock is 14%. The risk-free rate of return is 4% and the real rate of return is 2%. How much are investors requiring as compensation for risk?

A. 8%

B. 10%

C. 12%

D. 14%

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Answer #1

SOLUTION:-

Therefore, the correct option is (B) 10%.

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