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The market premium is 7 . 2 5 % and the risk - free rate is the same as the average in chapter 1 0

The market premium is

7.25 %

and the risk

-

free rate is the same as the average in chapter

10

3.4 % .

If the beta of a stock is

10 %

higher than the overall market beta, what is the cost of equity?

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