If a stock has a beta coefficient, equal to 1.20, the risk premium associated with the market

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If a stock has a beta coefficient, equal to 1.20, the risk premium associated with the market is 9 percent, and the risk-free rate is 5 percent. Based on application of the capital asset pricing model, what should be the appropriate return?


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Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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