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PLEASE EXPLAIN. THANKK YOU Diddy Corp. stock has a beta of 1.2, the current risk-free rate is 7 percent, and the expected return on the

image text in transcribed PLEASE EXPLAIN. THANKK YOU

Diddy Corp. stock has a beta of 1.2, the current risk-free rate is 7 percent, and the expected return on the market is 13.50 percent. What is Diddy's cost of equity? (Round your answer to 2 decimal places.) Cost of equity 16.20 %

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