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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

image text in transcribed
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 %. 1) 11.8 2) 12.4 3) 13.6 4) 10.4 5) 12.0

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