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SBITANI has cash of $2,000,000 that will be invested in an equity investment that has a beta of 1.25. The current risk-free rate in the

SBITANI has cash of $2,000,000 that will be invested in an equity investment that has a beta of 1.25. The current risk-free rate in the market is 2.5%, and the market requires a 7% risk premium for equity securities. What return should SBITANI expect to earn?

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