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Problem 1 Compute the expected value of the following distribution Product VP Sales Value V $153,059 $235,000 $357,265 Probability P 0.25 0.5 0.25 (expected value)

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Problem 1 Compute the expected value of the following distribution Product VP Sales Value V $153,059 $235,000 $357,265 Probability P 0.25 0.5 0.25 (expected value) Calculate the required rate of return using the CAPM equation. Currently under consideration is an investment with a beta, b, of 1.5. At this time, the risk-free rate of return, R. is 7%, and the return on the market, rm, is 10%

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