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Muller is considering investing in an asset with beta coefficient of 2. Would you recommend him to invest in it or not given that the
Muller is considering investing in an asset with beta coefficient of 2. Would you recommend him to invest in it or not given that the asset has an 12.5 percent rate of return, risk free rate is 5.5 percent, and the risk premium of the market portfolio of the assets is 3.25 percent? (4 Points)
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