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courses / 2020 - Fall / Faculty of Business Administration / Business Administration / F20 - BUSA312AB / BUSA312 Course ABC Corporation's share had a

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courses / 2020 - Fall / Faculty of Business Administration / Business Administration / F20 - BUSA312AB / BUSA312 Course "ABC" Corporation's share had a rate return (1) that equates to 11.50% last year since: 1. the market risk premium (MRP) was equal to 4.75%. and 2. the risk-free rate (RI) on US treasury bills was equal to 5.50%. Now assume that there is a change in investor risk aversion and the market risk premium rises by 2%. What is"ABC" Corporation's new required return if The risk-free rate and "ABC" Corporation's beta remain fixed. ? W Next page Jump to ments

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