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Consider the data for Auroras Educational Services, Inc. Currently the firms Beta is 2.00 and the standard deviation for the firms monthly returns is 12.5%.
Consider the data for Auroras Educational Services, Inc. Currently the firms Beta is 2.00 and the standard deviation for the firms monthly returns is 12.5%. The Expected Return on the market is 10% and Treasury Bill rate is 4.00%.
Using the data above, compute the expected return for Aurora.
12%
6.0%
10.0%
16%
None of the answers provided are correct.
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