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You have the following information for the company Exxon. The beta coefficient for Exxon is .85 based on the past information. The 3-year average of
You have the following information for the company Exxon. The beta coefficient for Exxon is .85 based on the past information. The 3-year average of 30-day T-bill rate is 2%, the average market return of (say, S&P 500 index) in the same period is 16%. Answer the following questions: a) What is the required return for Exxon? Why do we call it required return
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