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Abbot Inc. has abetaofl.71 and anE(R) of20%. Costello Inc. has abetaofl.6 and an E(R) of 19%. What would the riskee rate have to be for
Abbot Inc. has abetaofl.71 and anE(R) of20%. Costello Inc. has abetaofl.6 and an E(R) of 19%. What would the riskee rate have to be for these stocks to be correctly
priced according to the CAPM?
A) 4.412% B) 3.000% C) 6.667% D) under2%
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