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(Expected rate of return using CAPM formula ) a. Compute the expected rate of return for Intel common stock, which has a 1.4 beta. The

(Expected rate of return using CAPM formula)

a.Compute the expected rate of return for Intel common stock, which has a 1.4 beta. The risk-free rate is 5 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 13 percent.

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