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Sick and better company common stock has a beta of 1.2. The risk-free rate is 6 percent, and the expected market rate of return is
Sick and better company common stock has a beta of 1.2. The risk-free rate is 6 percent, and the expected market rate of return is 12 percent. Determine the required rate of return on the security.
A) 13.2%
B) 19.2%
C) 11.4%
D) 7.2%
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