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Listen If Martini observes that the risk-free rate (Rf) is 2% and the market return (Rm) is 9% then, according to the Capital Asset Pricing
Listen\ If Martini observes that the risk-free rate (Rf) is
2%
and the market return (Rm) is
9%
then, according to the Capital Asset Pricing Model (CAPM), he knows that for a stock with a beta of 1.2, the required rate of return will be\ 11.8\ 12.4\ 13.6\ 10.4\ 12.0
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