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ABC Corp. has a beta of 1.2. The current risk-free rate is 5% and the market risk premium is estimated at 8%. What is the
ABC Corp. has a beta of 1.2. The current risk-free rate is 5% and the market risk
premium is estimated at 8%. What is the required rate of return on the stock?
a) 14.6%.
b) 13.0%.
c) 14.0%.
d) 5.0%.
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