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What's the required rate of return on a stock given the following parameters: Risk-free return = 3% Expected return on the equity (aka stock) market

  1. What's the required rate of return on a stock given the following parameters:
  • Risk-free return = 3%
  • Expected return on the equity (aka stock) market (e.g., S&P 500) = 10%
  • Stock's beta = 1.7

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