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Solution: DATA Risk-free rate = 2.0% Market expected return = 13.0% Beta = 1.25 Rate of return = Compute an appropriate rate of return for
Solution: | |||
DATA | |||
Risk-free rate = | 2.0% | ||
Market expected return = | 13.0% | ||
Beta = | 1.25 | ||
Rate of return = | |||
Compute an appropriate rate of return for ABC Corporation common stock, which has a beta of 1.25.The risk -free rate is 2 percent, and the market portfolio has an expected return of 13 percent.
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