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Millat Steels has a capital structure consisting of debt and equity. The expected return on the market portfolio is 15%. The debt is riskless whereas

Millat Steels has a capital structure consisting of debt and equity. The expected return on the market portfolio is 15%. The debt is riskless whereas the systematic risk of equity has a Beta coefficient equal to 1. What is the expected return on equity?

A. 15%
B. 12%
C. 10%
D. Need to know the risk free rate to determine the expected return on equity

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