Question: answer and steps please Assume CAPM is a correct model. Stock A's required rate of return is 12% and Stock B's required rate of return
Assume CAPM is a correct model. Stock A's required rate of return is 12% and Stock B's required rate of return is 10%. Beta of Stock A is 1.2 and Beta of Stock B is 0.8. What is the required rate of return of Stock C which has a beta of 1.56? The required rate of return of Stock C is % (Please retain at least 4 decimals in your calculation and at least 2 decimals in the final answer)
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