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Assume the following information for ABC stock: Beta = 1.8 Risk-free rate of return = 4.0% Market rate of return = 8.5% What is its

Assume the following information for ABC stock:

  • Beta = 1.8
  • Risk-free rate of return = 4.0%
  • Market rate of return = 8.5%

What is its expected rate of return according to the capital asset pricing model (CAPM)?

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