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K1, S1 125marks] ) Sarah Co mpany has beta of 1.5, if you have been told that the risk free e market return is 14%.

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K1, S1 125marks] ) Sarah Co mpany has beta of 1.5, if you have been told that the risk free e market return is 14%. Compute the required e of return is 4% and th rate of return for Sarah Company's share using CAPM, then market risk premium? [15 marks)

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