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12. LSP Corporation wishes to determine the required return on asset Z, which has a beta of 1.5. The risk-free rate of return is 7%:
12. LSP Corporation wishes to determine the required return on asset Z, which has a beta of 1.5. The risk-free rate of return is 7%: the return on the market portfolio of assets is 11%. What is the required rate of return using CAPM? * O a) 11% O b) 13% c) 14% d) 15% e) None of the above
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