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YZ common stock has a beta of 0.50 , while ABC common stock has a beta of 2.0 . The expected return on the market
YZ common stock has a beta of 0.50 , while
ABC
common stock has a beta of 2.0 . The expected return on the market is
12%
and the risk-free rate is
4%
. Based on CAPM, and making use of the information, the required return on
xYZ
common stock should be , and the required return on
ABC
cornmon stock should\
10%;28%
\
8%;20%
\
4%;16%
\
6%;24%
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