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Linke Motors has a beta of 1.30, the rate on U.S. Treasury securities is 6.5%. The annual return on the stock market during the past
Linke Motors has a beta of 1.30, the rate on U.S. Treasury securities is 6.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 10.75%. Based on the SML, what is the firm's required return? Do not round your intermediate calculations.
Group of answer choices
12.03%
14.79%
14.43%
9.86%
14.31%
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