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P9-3 CAPM Required Return Wetwater Inc. has a beta of 2.50. If the market return is expected to be 12 percent and the risk-free rate
P9-3 CAPM Required Return Wetwater Inc. has a beta of 2.50. If the market return is expected to be 12 percent and the risk-free rate is 3.0 percent, what is Wetwater's required return?
Wetwater's required return = Rf + B x (Rm - Rf)
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