Question: 2. According to the information given in the table below, what should be the expected return for DEF Inc.? a. 20.8% b. 20.4% C. 19.5%

2. According to the information given in the table below, what should be the expected return for DEF Inc.? a. 20.8% b. 20.4% C. 19.5% d. 22.0% Factor 1 2 3 E(R) Betas of stocks ABC Inc. 1.4 0.8 0.7 17.5% DEF Inc 2.0 0.6 1.3 ? Factor Risk Premium 4.4% 7.1% 2.8%

2. According to the information given in the table below, what should be the expected return for DEF Inc.? a. 20.8% b. 20.4% c. 19.5% d. 22.0%

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