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4. The water company's beta is one, the expected return from the market is twelve percent and the return from the risk-free asset is two

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4. The water company's beta is one, the expected return from the market is twelve percent and the return from the risk-free asset is two percent. (i) Briefly interpret the company's beta of one. (ii) Calculate the expected return to investors that should be used by the commission when setting the regulated price for the water company

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