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A manager believes his firm will earn a return of 16.80 percent next year. His firm has a beta of 1.31, the expected return on
A manager believes his firm will earn a return of 16.80 percent next year. His firm has a beta of 1.31, the expected return on the market is 13.40 percent, and the risk-free rate is 6.40 percent. Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)
Required return = ?%
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