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Suppose a company in the tobacco industry has a beta of 1.25. The expected return on the market is 11.70 percent and the risk-free rate

Suppose a company in the tobacco industry has a beta of 1.25. The expected return on the market is 11.70 percent and the risk-free rate is 6.92. What is the required rate of return based on the capital asset pricing model?

  • Record your answer as a percentage rounded to two decimal places (e.g. 1.23). Do not include a percentage sign (e.g. %) in your answer.

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