Question: A beta coefficient of 1.2 implies that a security will return ____% if the market return is 8%. Firm X buys equipment for $5,000 and

A beta coefficient of 1.2 implies that a security will return ____% if the market return is 8%.

Firm X buys equipment for $5,000 and leases the equipment for $800 per year for 5 years. If Firm X expects to sell the equipment at the end of year 5 for $2,000, what is the firm's expected rate of return on the equipment?

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