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(Required rate of return using CAPM) a. Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk-free rate

(Required rate of return using CAPM)

a. Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk-free rate is 2%, and the market portfolio (New York Stock Exchange stocks) has an expected return of 11%.

b. Why is the rate you computed a fair rate?

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