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Use CAPM to determine the required return on a common stock, given: real risk-free rate 1% expected return on the avg. stock 7% beta of

Use CAPM to determine the required return on a common stock, given: real risk-free rate 1% expected return on the avg. stock 7% beta of the stock 1.2 T-bill rate 2%

Which of these are correct? 8.4% 10.4% 8.2% 8.0% 9.2%

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