Suppose the risk-free rate of return, r RF , is 4 percent, and the market return, r

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Suppose the risk-free rate of return, rRF, is 4 percent, and the market return, rM, is expected to be 12 percent. What is the required rate of return for a stock with a beta coefficient, b, equal to 2.5?

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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