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Blue Dog Inc has common shares with a beta of 1.2. Treasury bills are currently yielding...

  1. Blue Dog Inc has common shares with a beta of 1.2. Treasury bills are currently yielding 6% and the expected return on the S&P/TSX Composite Index is 11%. The risk premium on Blue Dog Inc. common shares is:

    B. 6%

    answer is 6% Why?

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