Question: Assume Rf = 8%, = 1.5, and Km = 12%. Fine the cost of equity using the security market line or CAPM formula. A. 10.8%

Assume Rf = 8%, = 1.5, and Km = 12%. Fine the cost of equity using the security market line or CAPM formula.

A. 10.8%

B. 12.4%

C. 14%

D. 15%

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