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3. Assume you know the risk-free rate of return (rrf) was 6%; the marker risk premium (rm) is 8% and the beta of the firm

3. Assume you know the risk-free rate of return (rrf) was 6%; the marker risk premium (rm) is 8% and the beta of the firm was estimated at 1.5. Using the capital asset pricing model, estimate the required rate of return (rE). TrE=rrf+(rm-rrf)"betal

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