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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, you
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
E.None of the abov
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