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Using the CAPM/SML equation, estimate the current required rate of return on common equity, RE, for Acme, Inc. The current risk-free rate on 30-day U.S.
Using the CAPM/SML equation, estimate the current required rate of return on common equity, RE, for Acme, Inc. The current risk-free rate on 30-day U.S. Treasurys is 3.50 percent, the current return on the market as a whole is 9.75 percent, and Acme's beta is 0.90. in the problem you were told that the long-run average market risk premium is 6.25 percent, would/should that have changed your answer? Why
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