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13. Assume that the risk-free rate is 5%, the return on the market is 15%, and that a firm's beta is 0.5. What retum must

13. Assume that the risk-free rate is 5%, the return on the

market is 15%, and that a firm's beta is 0.5. What retum must you earn to be satisfied that you are being fairly

compensated for the risk of the firm? 14. Using the assumptions made above about the risk-free

rate and the return on the market, what will be the

required return for a security with a bela of 1.5?

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