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You want to estimate the cost of equity of firm A using CAPM. Firm A has a beta of 1.3. Assume that the return on
You want to estimate the cost of equity of firm A using CAPM. Firm A has a beta of 1.3. Assume that the return on the market portfolio is 8.52%, and the risk-free rate is 3%. What is the cost of equity of firm A?
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10.17%
11.74%
14.21%
12.11%
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