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The following data has been gathered concerning a particular investment and conditions in the market. Risk-free rate 4.5% Market return 11.0% Beta of investment 1.35

The following data has been gathered concerning a particular investment and conditions in the market.

Risk-free rate

4.5%

Market return

11.0%

Beta of investment

1.35

According to the Capital Asset Pricing Model, the required return for this investment is

(a) 8.8%.

(b) 12.9%.

(c) 13.3%.

(d) 14.9%.

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