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Assume the risk-free rate of return and the expected rate ofreturn on market portfolio are 6% and 16%, respectively.Furthermore, suppose ABC with beta of 1.2

Assume the risk-free rate of return and the expected rate ofreturn on market portfolio are 6% and 16%, respectively.Furthermore, suppose ABC with beta of 1.2 pays 40% of its earningsin dividends. I 0 answers

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