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Elba Eateries' stock has a beta of 0.70. Assume that the risk-free rate, r RF , is 5.5% and the market risk premium, (r M

Elba Eateries' stock has a beta of 0.70. Assume that the risk-free rate, r_RF, is 5.5% and the market risk premium, (r_M r_RF), equals 4%.

Compute the required rate of return for Elba Eateries.

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