Question: Assuming that the expected market return [E(Rm)] is 11% and the risk-free rate of return (Rf) is 8%, the cost of equity of a company

Assuming that the expected market return [E(Rm)] is 11% and the risk-free rate of return (Rf) is 8%, the cost of equity of a company which has a beta () of 0.8 will be closest to:

Select one: a. 12.16% b. 6.24% c. 4.16% d. 10.4%

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