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Assume that the market risk premium is 7.25 %. The 10-year Treasury bond rate is 3.00%. Use beta you calculated in answering Question 2. Q2

Assume that the market risk premium is 7.25 %. The 10-year Treasury bond rate is 3.00%. Use beta you calculated in answering Question 2.

Q2 beta=1.242

Calculate required rate of return for the stock using CAPM Model and the following information.

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