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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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