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The betas of the two companies A and B are respectively 1 and 0.6. The minimum required return of the company A is 14%. If
The betas of the two companies A and B are respectively 1 and 0.6. The minimum required return of the company A is 14%. If the risk-free rate is at 6%, what is the minimum required return of the company B?
A) 10.8%
B) 10.2%
C) 12.1%
D) 11.2%
E) 11.8%
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