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The board of directors of your corporation has required investment portfolio assets to return no less than 12%. The Beta relevant to your company is

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The board of directors of your corporation has required investment portfolio assets to return no less than 12%. The Beta relevant to your company is 1.2. Current risk free rate (TVM) is 2% and inflation is expected at 1.5% What is the minimum market rate premium you can accept on these assets in your corporate portfolio? 7.8% 7.1% cannot be determined from data supplied 8.5% 12%

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