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Attempts Keep the Highest / 1 4. Practice Problem 8-4 I % Attempts 4. Practice Problem 8-4 eBook Keep the Highest/ 1 The current risk-free

image text in transcribed Attempts Keep the Highest / 1 4. Practice Problem 8-4 I %

Attempts 4. Practice Problem 8-4 eBook Keep the Highest/ 1 The current risk-free rate of return, rRF, is 2 percent and the market risk premyum, RPM, is 7 percent. If the beta coefficient associated with a firm's stock is 1.6, what should be the stock's required rate of return? Round your answer to one decimal place.

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