Question: 1. If a stock has a beta coefficient, equal to 1.20. the risk premium associated with the market is 8 percent, and the risk-free rate

1. If a stock has a beta coefficient, equal to 1.20. the risk premium associated with the market is 8 percent, and the risk-free rate is 3 percent, application of the capital asset pricing model indicates the appropriate return should be 12.6% 9.8% 9.0% 14%

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