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Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 4 percent and
Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 4 percent and the expected return for the market is 17 percent.
STOCK BETA
A 0.63
B 0.95
C 1.48
a. Using the CAPM, the required rate of return for stock A is
B.Using the CAPM, the required rate of return for stock b is
C.Using the CAPM, the required rate of return for stock C is
(Round to two decimal places.)
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