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The risk - free rate is 5 % and the average return on the market index is 1 0 % . You consider investing in
The riskfree rate is and the average return on the market
index is You consider investing in a stock where the
future cash flows are statistically uncorrelated with the return
on the market index. What is the cost of capital for the
investment?
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
7th Edition
0538877766, 9780538877763
