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Compute expected rate of return for stock, which has 1.5 beta. Risk free rate is 3% and portfolio has expected return of 12%. Round to
Compute expected rate of return for stock, which has 1.5 beta. Risk free rate is 3% and portfolio has expected return of 12%. Round to one decimal place
True or False
The rate is fair and expected because the CAPM provides a theory of how risk and expected return are connected or traded off in the capital markets.
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