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A manager believes his firm will earn areturn of 14.90 percent next year. His firm has a beta of 1.43, the expected return on the
A manager believes his firm will earn areturn of 14.90 percent next year. His firm has a beta of 1.43, the expected return on the market is 11.40 percent, and the risk-free rate is 4.40 percent.
Compute the return the firm should earn given its level of risk
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