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a. Compute the expected rate of return for Intel commonstock, which has a 1.2 beta. Therisk-free rate is 5 percent and the market portfolio(composed of

a. Compute the expected rate of return for Intel commonstock, which has a 1.2 beta. Therisk-free rate is 5 percent and the market portfolio(composed of New York Stock Exchangestocks) has an expected return of 12 percent.

b.Why is the rate you computed the expectedrate?

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