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Q: Calculate the required rate of return for Mars Inc.'s stock . The Mars's beta is 1.2, the rate on a T-bill is 4 percent,
Q: Calculate the required rate of return for Mars Inc.'s stock. The Mars's beta is 1.2, the rate on a T-bill is 4 percent, the rate on a long-term T-bond is 6 percent, the expected return on the market is 11.5 percent, the market has averaged a 14 percent annual return over the last six years, and Mars has averaged a 14.4 return over the last six years.
a) 12.6 b) 13.2 c) 14.0% d) 15.6% e) 16.2%
I really need the answer to show the equations and steps used so that I can learn from it. Thanks
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