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1. You are considering buying Goggle stock and see the beta is 1.75 , the risk-free rate is 3%, and the expected return on the

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1. You are considering buying Goggle stock and see the beta is 1.75 , the risk-free rate is 3%, and the expected return on the market is 8%. What is the required return on Goggle? a. 14,00% b. 22.25% c. 17.00% d. 10.25% c. 11.75% 2. What is the typical relationship between the standard deviation of an individual common stock and the standard deviation of a well-diversified portfolio of common stocks? a. The standard deviations should be equal. b. Individual stock's standard deviation will be higher. c. Individual stock's standard deviation will be lower. 3. Rearden Metals has a current stock price of $32 per share, is expected to pay a dividend of $1.50 in one year, and its expected price right after paying that dividend is $34. Rearden's equity cost of capital is closest to: a. 4.7% b. 10.9% c. 63% d. 10.3% c. 4.4%

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