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A firm has a beta equal to one half on the beta of the market portfolio. If the expected return on the market is expected

A firm has a beta equal to one half on the beta of the market portfolio. If the expected return on the market is expected to be 12% and the T-Bil rate is 5%, what is the firm's cost of equity? 6.0 % 11.0 % 13.5 % 8.5 %

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