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5. Assume that the risk-free rate is 6% and the expected return of the market is 12.5%. What is the required return on a stock

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5. Assume that the risk-free rate is 6% and the expected return of the market is 12.5%. What is the required return on a stock that has a beta of 1.30 ? Required return 6. Suppose a stock's required return is 12%. If the risk-free rate is 5% and the expected return of the market is 10%, what is the stock's beta? Beta 7. Assume you are thinking of adding Apple's stock to your well-diversified portfolio. If the risk-free rate is 4% and the expected return of the market is 12%, what would Apple's required return be, based on its current beta of 0.90? Required Retum

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