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Working under the CAPM assumptions, the equity cost of capital for Firm A is 21.2% and the equity cost of capital for Firm B is

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Working under the CAPM assumptions, the equity cost of capital for Firm A is 21.2% and the equity cost of capital for Firm B is 14.3%. Firm A has a beta of 1.31 with the market, and Firm B has a beta of 0.77 with the market. Calculate the expected return of the market. 16.46% O 17.24% 15.69% 18.01% O 18.79%

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