7. Select a beta estimate that you believe is best. (If you are not sure, you may...

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7. Select a beta estimate that you believe is best. (If you are not sure, you may want to consider an average of the given estimates.) Assume that the risk-free rate is 5% and that the market risk premium is 6%. What is the required return on the company’s stock?

262 Part 3: Stocks and Options

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