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Question 8 Suppose you have the following information on two stocks Laurel Inc. has a beta of 1.8 and an E(R) of 22%. Hardy Inc.

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Question 8 Suppose you have the following information on two stocks Laurel Inc. has a beta of 1.8 and an E(R) of 22%. Hardy Inc. has a beta of 1.6 and an E(R) of 20.44%. What would the risk-free rate have to be for these stocks to be correctly priced according to the CAPM? a. 7.00% b. 7.96% c. 8.00% d. 8.96% e. 9.00%

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