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A stock has a beta of 1.5, the market risk premium is 6% and the risk-free rate is 2%. What is the lowest return the
A stock has a beta of 1.5, the market risk premium is 6% and the risk-free rate is 2%. What is the lowest return the company should accept on a new investment?
A 7.5%
B 10.5%
C, 15.25%
D, 12.5%
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