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Two companies, A and B, are worth $4 million and $7 million, respectively. A and B have CAPM expected rates of returns of 11.1% and
Two companies, A and B, are worth $4 million and $7 million, respectively. A and B have CAPM expected rates of returns of 11.1% and 17%, respectively. If the two companies merge, what will the conglomerate's CAPM expected rates of return be?
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