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Currently, the expected return on the market is 12.5% and the required rate of return for Alpha, Inc. is 12.5%. Therefore, Alpha's beta must be:

  1. Currently, the expected return on the market is 12.5% and the required rate of return for Alpha, Inc. is 12.5%. Therefore, Alpha's beta must be:

    less than 1.0.

    greater than 1.0.

    equal to 1.0.

    unknown based on the information provided.

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