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Problem 1: The expected return on the market portfolio equals 13.98%. The current risk-free rate is 6.07%. What would be required return on an investment
Problem 1: The expected return on the market portfolio equals 13.98%. The current risk-free rate is 6.07%. What would be required return on an investment with a beta multiplier of 4.71%? Problem 2: Lexie Lore's Nail Salon and Spa confirms that the risk-free rate is 2.41% and market risk premium is 9.57%. Using the capital asset pricing model, compute for the required rate of return on a stick with a beta multiplier of 3.33%
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