Question: Assume CAPM is a correct model. Stock A's required rate of return is 12% and Stoc B's required rate of return is 10%. Beta of

Assume CAPM is a correct model. Stock A's required rate of

Assume CAPM is a correct model. Stock A's required rate of return is 12% and Stoc 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 1.4? The required rate of return of Stock C is %

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