Question: a. Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk free rate is 6 percent, and the

a. Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 16 percent.

b. Why is the rate you computed fair?

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