From the following information, calculate b (beta), and determine the cost of equity, assuming risk-free return (RF)

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● From the following information, calculate b (beta), and determine the cost of equity, assuming risk-free return (RF) = 7% and market return RM = 14%.

Month Return on Security A (%) Market Return (%)

1 10 –12 2 6 4 3 12 11 4 7 6 5 –9 –11 6 11 15

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