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SUPPOSE JUTTIT IVICAInany, LITE PICSILE investment needed to take a position in the stock is $50 million, it will have an expected return of 18

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SUPPOSE JUTTIT IVICAInany, LITE PICSILE investment needed to take a position in the stock is $50 million, it will have an expected return of 18 percent, and its estimated beta coefficient is 2.0. Should the new share be purchased? At what expected rate of return should McAlhany be indifferent to purchasing the share? (7 marks)

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