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14. Kimberly, Motors has a beta of 1.30, the T-bill rate is 3.00%, and the Tbond rate is 7.0%. The annual return on the stock

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14. Kimberly, Motors has a beta of 1.30, the T-bill rate is 3.00%, and the Tbond rate is 7.0%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 13.00%. Based on the SML, what is the firm's required return? a. 13.51% b. 13.86% . 14.80% d. 14.58% e. 14.95% IS Newsome's stock has a beta of 1.23 its required returnis11S0% andtherisk-free rate 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.) a. 10.36% b. 10.62% c. 10.88% d. 10.15% e. 11.43% 16. 5-year Treasury bonds yield 5.0%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%, what is the real risk-free rate, r"? a. 2.59% b. 2.70% c. 3.20% d. 3.52% e. 3.87%

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