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how is this solved? 3. What is the expected return for the common shares of a firm if the firm's equity has a beta of

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3. What is the expected return for the common shares of a firm if the firm's equity has a beta of 1.2, the risk-free rate is 4%, and the expected return on the market is 10%? a. 11.2% b. 11.7% c. 12.8% d. 13.6% Solution: A

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