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Assume that market return = 8%, risk free rate = 1%. If Beta of company 1 = 1.5, what is company 1s expected return? 10%

Assume that market return = 8%, risk free rate = 1%. If Beta of company 1 = 1.5, what is company 1s expected return?

  1. 10%
  2. 11.5%
  3. 12%
  4. 8%

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