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a. Compute a fair rate of retum for Intel common stock, which has a 1.5 beta. The risk-free rate is 8 percent, and the market

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a. Compute a fair rate of retum for Intel common stock, which has a 1.5 beta. The risk-free rate is 8 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 12 percent. b. Why is the rate you computed a fair rate? a. Using the CAPM, the fair rate of return for Intel common stock is \%. (Round to two decimal places.)

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