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1. The risk-free rate of DAF Digital LLC. is 8 percent. The average expected return for the industry is 16 percent. a. Using CAPM, what

1. The risk-free rate of DAF Digital LLC. is 8 percent. The average expected return for the industry is 16 percent.

a. Using CAPM, what is the expected return of DAF Digital LLC if the beta of its stock is 0.7?

b. What is the beta of a competitor in the same industry that has an expected return of 24 percent?

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