Jensen Corp. has an expected excess return of 3% for the coming year. The company's...
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Jensen Corp. has an expected excess return of 3% for the coming year. The company's beta is 0.8 and the expected market rate of return is 10%. Suppose that the actual market rate of return is 13%. Based on this information, what is your revised expectation for Jensen's excess return?
a) 6.0%
b) 12.4%
c) 5.4%
d) 15.4%
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