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Consider a stock whose price is currently $50.52 that offers a rate of return of 14 percent. The expected return on the market portfolio is
Consider a stock whose price is currently $50.52 that offers a rate of return of 14 percent. The expected return on the market portfolio is 17 percent, and the risk-free rate of return is currently 6 percent. Suppose that expected returns are generated by the CAPM. If the stock's beta increases by 92 percent what will the firm's share price become?
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