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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%
image text in transcribed
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 common stock should 10%;28%. 8%;20% 4%;16%. 6%;24%

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