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XYZ Company's stock has a beta (b) of 1.28, the risk-free rate (TRF) is 1.25%, and the market risk premium (RPM) is 5.50%. Question: Calculate
XYZ Company's stock has a beta (b) of 1.28, the risk-free rate (TRF) is 1.25%, and the market risk premium (RPM) is 5.50%. Question: Calculate the firm's required rate of return. Show the step-by-step calculation and circle your answer. (Hint: Required return=rRF+ b(RPM)) Instruction: Do not round your result. Only enter a numerical value, do not enter any dollar, S, or % symbol. When you attach a file (part 2) showing your work, write down the equation that you need to use to solve this problem. Next, plug in all the given information. (If you use an online calculator, give the link in your uploaded file). (express your numerical answer in percentage; for example, if you get 0.05, it should be expressed in percentage as 5%. Then you enter 5)
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