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If Martin observes that the risk-free rate is 2% and the market risk premium is 5 then, according to the Capital Asset Pricing Model (CAPM),

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If Martin observes that the risk-free rate is 2% and the market risk premium is 5 then, according to the Capital Asset Pricing Model (CAPM), he knows that for a stock with a beta of 1.4, the required rate of return will be % 1) 8.50 2) 10.0 3) 9.00 4) 8.00 5) None of the given answers for this question are within 0.05 points of the correct answer. 6) 9.50 Bethel, Inc. will not pary a dividend for the next four years (i.e., D1=30,D2=50,D3 - 50;D4=503. But exactly five years from today, the compary will pay out a dividend of 54.75 (i.e., D5=4.75 ). After that, the dividend will grow at 2.70% per year forever. If the required rate of return on Bethel's stock is 11%, the stock's current price (i.e., Pol is 5 1) 33.14 2) 34.92 3) 36.46 4) 37.70 5) 35.71 6) None of the given answers for this question are within $0.05 of the correct

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