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You bought a stock that has a beta value of 1.5. If you estimate that the market index return (e.g., S&P500) is 11% and the
You bought a stock that has a beta value of 1.5. If you estimate that the market index return (e.g., S&P500) is 11% and the risk-free rate (e.g., the 10-year T-Bond) is 5%, what will be the required rate of return on the stock?
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