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Magic Company's stock has a beta of 1.20, the risk-free rate is 4.50% and the market risk premium in 5.00%. What is Magic's required return?
Magic Company's stock has a beta of 1.20, the risk-free rate is 4.50% and the market risk premium in 5.00%. What is Magic's required return? Hint: ROR = Rrf + RPm(b)
a. 10.25%
b. 10.50%
c. 10.75%
d. 11.00%
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