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Use the security market line to determine the required rate of return for the followingfirm's stock. The firm has a beta of0.80, the required return

Use the security market line to determine the required rate of return for the followingfirm's stock. The firm has a beta of0.80, the required return in the market place is12.50%, and the risk

free rate of return is3.50%.

A.

2.80%

B.

13.50%

C.

7.20%

D.

10.70%

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