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6) Pedro wants to calculate the expected rate of return for security for his work as a freelance investment banker. He has the following figures

6) Pedro wants to calculate the expected rate of return for security for his work as a freelance investment banker. He has the following figures to calculate CAPM: the risk-free interest rate is 2%, the expected return of the market is 14%, and the risk index of the security is 1.35.

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