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MMLU-Pro / 578 / Suppose a stock has the following information. It is listed on the London stock…

Problem

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question

Suppose a stock has the following information. It is listed on the London stock exchange and operates throughout Europe. The yield on a UK 10 year treasury is 2.8%. The stock in question will earn 8.6% as per historical data. The Beta for the stock is 1.4, i.e., it is 140% volatile to the changes in the general stock market. What is the expected rate of return?

category

business

options

  1. 5.6
  2. 2.8
  3. 1.4
  4. 10.92
  5. 7.98
  6. 6.2
  7. 9.4
  8. 8.6
  9. 11.76
  10. 12.34

src

theoremQA-Finance

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