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Stock Apple and Blueberry have the following beta 1,2 and 0,8 respectively. Risk free rate= 3%, and market risk premium is 4% Required: a. Calculate
Stock Apple and Blueberry have the following beta 1,2 and 0,8 respectively. Risk free rate= 3%, and market risk premium is 4% Required:
a. Calculate required rate of return both stock
b. what happened if market risk premium become 6%, risk free rate stay the same, what is new rate required rate of return, and explain the effect on both stock.
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