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Datem Corp. has an expected return of 11%. With a risk-free rate of 3%, a market risk premium of 7% and a beta of 0.8,
Datem Corp. has an expected return of 11%. With a risk-free rate of 3%, a market risk premium of 7% and a beta of 0.8, you can estimate its required return. What is the required return, and would Datem plot above or below the security market line (SML)? A. Required return = 8.6%, plots above the SML B. Required return = 8.6%, plots below the SML C. Required return = 10%, plots above the SML D. Required return = 10%, plots below the SML
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