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Given a market premium of 8 % , a T - Bill rate of 2 . 6 % , and a Beta of 1 .

Given a market premium of 8%, a T-Bill rate of 2.6%, and a Beta of 1.8, what is the required rate of return for this security? Show your work.
Would #5 above be considered a risky return? why or why not? Explain.
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