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The estimated beta for Caterpillar Inc. is 1.35. The risk free rate of return is 3 percent and the Equity Risk Premium is 4 percent.

The estimated beta for Caterpillar Inc. is 1.35. The risk free rate of return is 3 percent and the Equity Risk Premium is 4 percent. What is the required rate of return for CAT using the CAPM?

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8.4%

12.3%

15.2%

10.1%

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