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Assume the real return in the economy is 3.5 percent. It is anticipated that the consumer price index will go from 289.11 to 303.36. Shares

Assume the real return in the economy is 3.5 percent. It is anticipated that the consumer price index will go from 289.11 to 303.36. Shares of common stock for the market in general are assumed to have a required rate of return 60 percent higher than the risk-free rate. Calculate the required rate of return on common stock.

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