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Please show step by step how to solve CAPM: expected return for a potential firm you want to buy. Answer: 13.02 information: expected return of

Please show step by step how to solve CAPM: expected return for a potential firm you want to buy.

Answer: 13.02

information:

expected return of the market 9%

return on a T-bill equals 2.3%

Firm's Beta equals 1.6

projects operating income of $7,381,960

Thank you.

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