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AA Corporation's stock has a beta of 0.8. The risk free rate is 4% and the expected return on the market is 12 %. What
AA Corporation's stock has a beta of 0.8. The risk free rate is 4% and the expected return on the market is 12 %. What is the required rate of return on AAs stock? 6-3 Suppose that the risk free rate is 5% and that the market risk premium is 7%. What is the required return on (a) the market (b) a stock with a beta of 1.0 and (c) a stock with a beta of 1.7?
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