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5. Assume that the risk free rate is the current 10 year Treasury bond rate. You estimate that the market risk premium is 7 %.

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5. Assume that the risk free rate is the current 10 year Treasury bond rate. You estimate that the market risk premium is 7 %. a. What is the required rate of return with a stock with a Beta of 1.1? b. What is the required rate of return with a stock of Beta of 0.8

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