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Time to test your knowledge of CAPM Suppose the risk-free rate is currently 4%, a stock's beta is estimated to be 1.2 , and the

Time to test your knowledge of CAPM Suppose the risk-free rate is currently 4%, a stock's beta is estimated to be 1.2 , and the market risk premium is estimated to be 5%. What is the stock's expected return E(Rs) (or the cost of equity, ke)

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