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The XYZ Company is financed entirely with equity. XYZ has a beta of 1.20 and the current risk-free rate is 9.5 percent. If the expected

The XYZ Company is financed entirely with equity. XYZ has a beta of 1.20 and the current risk-free rate is 9.5 percent. If the expected market return is 14 percent, what rate of return should XYZ require on a project of average risk?

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