Question: How do i get to the answer, what calculations or formulas do i use? Group 29 Using the CAPM, calculate the Expected Return for the

How do i get to the answer, what calculations or formulas do i use?

Group 29 Using the CAPM, calculate the Expected Return for the Happy Valley Company: Alpha = 1.2%; Beta = 1.4 T-Bill Rate = 2.0%; S&P 500 average return rate = 8.0%; WACC = 9%. A. 6.7% B. 7.2% C. 9.3% D. 10.4% E. 13.1% Answer: D

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29 Using the CAPM, calculate the Expected Return for the Happy Valley Company: Alpha = 1.2%; Beta = 1.4 T-Bill Rate = 2.0%; S&P 500 average return rate = 8.0%; WACC = 9%. 6.7% 7.2% 9.3% 10.4% 13.1%

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