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Company XYZ has an adjusted beta of 1.15 . If the expected return on the stock market is 10%, the risk-free security yields 3%, and

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Company XYZ has an adjusted beta of 1.15 . If the expected return on the stock market is 10%, the risk-free security yields 3%, and the market risk premium is 7%, then what is the expected return on Company XYZ stock also known as its cost of common equity? 11.05% 10.45% 6.45% 14.50%

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