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a.Compute the expected rate of return for Acer common stock, which has a 1.8 beta. The risk-free rate is 7 percent and the market portfolio

a.Compute the expected rate of return for Acer common stock, which has a 1.8 beta. The risk-free rate is 7 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 14 percent.

b.Why is the rate you computed the expected rate?

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