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A.) Dell Technologies has a beta coefficient of 1.5. The risk free rate is 5 percent and the expected return on the market is 12

A.) Dell Technologies has a beta coefficient of 1.5. The risk free rate is 5 percent and the expected return on the market is 12 percent.

1. What is the expected return on Dell Technologies?

2. Suppose you buy Dell Technologies on margin (MR = 0.25). What is the expected return and beta of such an investment? (Assume you can borrow at the risk free rate of 5 percent)

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