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Lisa Miller at Basket Wonders (BW) is attempting to determine the rate of return required by their stock investors. Lisa is using a 5% Risk

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Lisa Miller at Basket Wonders (BW) is attempting to determine the rate of return required by their stock investors. Lisa is using a 5% Risk free rate (rf) and a long-term market expected rate of return of 8%. A stock analyst following the firm has calculated that the firm beta is 1.3. What is the required rate of return on the stock of Basket Wonders? 8.9% 9.0% 9.1%

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