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Assume that the risk free rate of interest is 3%, the market risk premium is 5%, and that the Betas for Dell and General Mills
Assume that the risk free rate of interest is 3%, the market risk premium is 5%, and that the Betas for Dell and General Mills are 1.2 and 0.8 respectively. According to the CAPM, what should be the required rate of return for these two stocks? 12.6%, 9.4% 8.6%, 7.4% 9.0%, 7.0% 5.4%, 4.6% 12.0%, 8.0%
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