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The risk-free rate on US government bonds is about 3.7%, and the long-term market return average is about 9.2%. If XYZ Corporation has a beta

The risk-free rate on US government bonds is about 3.7%, and the long-term market return average is about 9.2%. If XYZ Corporation has a beta of 0.9, what is their cost of equity?

8.7%

9.7%

10.7%

11.7%

is it 8.7

9.7

10.7

or

11.7

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