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a. Compute a fair rate of return for Intel common stock, which has a 1.1 beta. The risk-free rate is 5 percent, and the market

a. Compute a fair rate of return for Intel common stock, which has a 1.1 beta. The risk-free rate is 5 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 14 percent. b. Why is the rate you computed a fair rate?

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