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Question 3: You know that an investment with a beta of 1 generates an expected return of 9%, you also know that another investment, which

Question 3:

You know that an investment with a beta of 1 generates an expected return of 9%, you also know that another investment, which has a beta of 0, generates a return of 2%. What return can you expect on an investment with a beta of 0.75?

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