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Assume the following information for ABC stock: Beta = 1.8 Risk-free rate of return = 2.0% Market rate of return = 8.5% What is ABC's

Assume the following information for ABC stock:

  • Beta = 1.8
  • Risk-free rate of return = 2.0%
  • Market rate of return = 8.5%

What is ABC's required rate of return according to the capital asset pricing model (CAPM)?

9.75%

10.95%

11.70%

13.70%

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