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Elephant Company common stock has a beta of 1.5. The risk-free rate is 5 percent and the expected market rate of return is 15 percent.

Elephant Company common stock has a beta of 1.5. The risk-free rate is 5 percent and the expected market rate of return is 15 percent. Determine the required rate of return on the security. Show work.

25.2% b. 18.4% c. 20.00% d. 16.00%

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