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Just need the 2nd part Beau has been analyzing the common stock of Netflix, Inc. and has estimated its beta, bn, to be +1.85. The
Just need the 2nd part
Beau has been analyzing the common stock of Netflix, Inc. and has estimated its beta, bn, to be +1.85. The risk-free return, rre, is 3.0% and the return on market, rm, is 7.0%. Using the security market line equation, determine the required rate of return, rn, for Netflix. O 12.2% O 10.4% 8.8% O 9.9% From the information given in the previous question, calculate the market risk premium or RPM for the Netflix stock. 4.0% 7.0% O 3.0% O 10.0%Step by Step Solution
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