Question: Compute the required rate of return using the CAPM and the following information: Beta = .85 Expected return on the market = 9% Risk-Free Rate

Compute the required rate of return using the CAPM and the following information:

Beta = .85

Expected return on the market = 9%

Risk-Free Rate = 1.50%

a. 7.50%

b. 7.88%

c. 9%

d. 1.50%

e. 7.65%

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