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The common stock of Edna Mode Fashions has a beta of 1.2 and a standard deviation of 16.6 percent. The market rate of return is

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The common stock of Edna Mode Fashions has a beta of 1.2 and a standard deviation of 16.6 percent. The market rate of return is 9 percent and the risk-free rate is 3 percent. Using the Capital Asset Pricing Model, what is the cost of equity for this firm? 13.80 percent None of the answers is correct. 10.80 percent 10.20 percent 18.32 percent

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