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A company has an equity beta of 1.9. The risk free rate is 3.1% and the market risk premium is estimated as 5.2%. 1. What

A company has an equity beta of 1.9. The risk free rate is 3.1% and the market risk premium is estimated as 5.2%.

1. What is the company's cost of equity according to the CAPM?

2. The market portfolio has a beta of

a) 0

b) 1

c) 2

d) -1

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