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Company A's stock has an estimated beta of 1.4, and its required rate of return is 13 percent. Company B's stock has a beta of

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Company A's stock has an estimated beta of 1.4, and its required rate of return is 13 percent. Company B's stock has a beta of 0.8, and the risk-free rate is 6 percent. Determine the required rate of return on Company B's stock. A. 10.0% B. 9.8% C. 10.4% D. 10.2% E. 10.6%

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