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The required return on a stock is 13%. The risk-free rate has averaged 4% historically and is currently at 2%, which is what you would
The required return on a stock is 13%. The risk-free rate has averaged 4% historically and is currently at 2%, which is what you would earn next year if you held t-bills. The expected return on the market is 10%. You are planning on using your estimate to assess future stock prices. What is the best estimate of the stocks beta, given this information?
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