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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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