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The stock of Van Hessler Inc. has a beta of 0.87. The current return on T-Bonds is 3.15%, and the market risk premium is 6.25%.

The stock of Van Hessler Inc. has a beta of 0.87. The current return on T-Bonds is 3.15%, and the market risk premium is 6.25%. Use the CAPM to determine an appropriate long-term return on the firm's stock.

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