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Suppose 2 assets A and B with respective betas of 1 and 0.5. If the risk-free return is 4% and the minimum required return on
Suppose 2 assets A and B with respective betas of 1 and 0.5. If the risk-free return is 4% and the minimum required return on A is 10%, the minimum required return on asset B would be:
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10%
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6%
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8%
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7%.
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None of the above.
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