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Show your work, 1)Assume this information: risk free rate = 5%; market premium = 10%; and Required rate of return on Sin Corp.s stock is

Show your work,

1)Assume this information: risk free rate = 5%; market premium = 10%; and Required rate of return on Sin Corp.s stock is 12%.

a)Calculate the stock Beta.

b)If the stock beta were 2.0, what then would be the required rate of return?

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