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A stock is known to move 1.5% for every 1% that the market excess return varies. Suppose the market excess return is 8%. A) What
A stock is known to move 1.5% for every 1% that the market excess return varies. Suppose the market excess return is 8%. A) What must be the risk-free rate if the stock's cost of capital is 11%? B) What is the expected return on the stock if the risk-free rate is 19%?
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