Question: J&M Corporation common stock has a beta, b, of 1.2. The risk-free rate is 6%, and the market return is 11%. a. Determine the risk

J&M has a beta, b, of 1.2. The risk-free rate is 6%, and the market return is 11%.
a. Determine the risk premium on J&M .
b. Determine the required return that J&M should provide.
c. Determine J&M’s cost of equity using the CAPM.

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