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Q.3:- (a) The Wilson Inc. is eager to estimate the investor return before making an investment. The market required rate of return on S&P 500

Q.3:- (a) The Wilson Inc. is eager to estimate the investor return before making an investment. The market required rate of return on S&P 500 is 16%. Three months treasury bill yield is 6%. The Wilson stocks typically responds to changes in the political and economic environment only about 60% as vigorously as does that of the average stock. Find the required rate of return on Wilson stock using CAPM. Is this return estimated good for company? Why.

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