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Suppose that the risk-free rate is 5% and the expected market risk premium is 8%. Monsters Inc. has a beta of 0.8. Assume the CAPM

Suppose that the risk-free rate is 5% and the expected market risk premium is 8%. Monsters Inc. has a beta of 0.8. Assume the CAPM assumptions hold. Monsters' required return is closest to _________.

7.4%

13.0%

15.5%

11.5%

10.0%

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