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Diddy Corporation stock has a beta of 1 . 0 , the current risk - free rate is 5 percent, and the expected return on

Diddy Corporation stock has a beta of 1.0, the current risk-free rate is 5 percent, and the expected return on the market is 15.5 percent. What is Diddy's cost of equity?
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14.20 percent
18.50 percent
15.50 percent
16.30 percent
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