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21. If the expected return on the market portfolio (i.e., Rm) is 15%, if the risk-free rate (i.e., R.) is 4% and if the beta

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21. If the expected return on the market portfolio (i.e., Rm) is 15%, if the risk-free rate (i.e., R.) is 4% and if the beta of Homton, Inc. stock is 1.75, what is the equilibrium expected rate of return on Homton's stock according to the Capital Asset Pricing Model? 22. Compute the price of a $5,000 par value bond with a coupon rate of 7.5% (semi-annual payments) and 19 years remaining to maturity. Assume that the current yield to maturity on the bond is 8.60%. CACCA

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