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Acme Enterprises has a beta of 1.25. The historic return of the S&P500 has been 10.12% per year, and 3-month T-bills have returned 3.56% per
Acme Enterprises has a beta of 1.25. The historic return of the S&P500 has been 10.12% per year, and 3-month T-bills have returned 3.56% per year compounded annually. Using these historic returns as predictors of future returns, what the required return [or expected return] of Acme Enterprises?
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