Question
You have $10,000 and you want to know if Utes,LLC is a good buy. The firm's total risk is 15%, its systematic risk is 1.4,
You have $10,000 and you want to know if Utes,LLC is a good buy. The firm's total risk is 15%, its systematic risk is 1.4, the t-bill rate is 2%, the 30 year treasury rate is 3.5%, and the average market return is 6.7%. According to the CAPM, what is the expected return on Utes, LLC? (Enter your answer in percent rounded to 1 decimal, but without the % symbol. For example, if your answer is 7.2%, type "7.2" as your answer.)
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