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The real risk-free rate is 2% while the inflation rate is 3% and the market's risk premium is estimated to be 7%. The investor is

The real risk-free rate is 2% while the inflation rate is 3% and the market's risk premium is estimated to be 7%. The investor is looking to invest in a company with a beta of 1.5. What is the investor's required rate of return?

Select one:

a. 10.5%

b. 12.5%

c. 15.5%

d. 12.0%

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