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Practice Question 14 If the risk free rate prevailing in the market is 2%, the expected market return is 10%, and a firm has a

Practice Question 14 If the risk free rate prevailing in the market is 2%, the expected market return is 10%, and a firm has a beta of 0.8, what would be its cost of equity according to CAPM? 12% 7.2% 8.8% 8.4%

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