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Q2. The GDP growth rate is 4%. The market risk premium is 10%. The stock is twice as risky as the overall market. The discount

Q2. The GDP growth rate is 4%. The market risk premium is 10%. The stock is twice as risky as the overall market. The discount rate based on CAPM is:

a. 10%

b. 20%

c. 24%

d. None of the above

Please explain and do the work

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Foundations of Finance The Logic and Practice of Financial Management

Foundations of Finance The Logic and Practice of Financial Management

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