iCorporation has a relative systematic risk level that is 40% greater than the overall market. The expected

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iCorporation has a relative systematic risk level that is 40% greater than the overall market. The expected return on the market is 16%, and the risk-free rate is 7%. Using the CAPM, the required rate of return for iCorporation is closest to

a. 16.0%

b. 19.6%

c. 22.4%

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Fundamentals Of Investing

ISBN: 9781292153988

13th Global Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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