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The following data have been developed for Ding Corp. Assume that the risk-free rate is 3%. The covariance between Ding and the Market portfolio is
The following data have been developed for Ding Corp. Assume that the risk-free rate is 3%. The covariance between Ding and the Market portfolio is 0.018408. Find the required rate of return for Ding Corp using the Capital Asset Pricing Model (CAPM). State Probability Market Return Company Return 1 0.10 -0.12 -0.24 2 0.30 0.03 0.00 3 0.40 0.10 0.15 4 0.20 0.20
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