Question: i. Using CAPM, find the required return for XYZ stock, given the following information: XYZ's beta Return from SP500 portfolio, % Return from a T-Bill,

i. Using CAPM, find the required return for XYZ stock, given

i. Using CAPM, find the required return for XYZ stock, given the following information: XYZ's beta Return from SP500 portfolio, % Return from a T-Bill, % 1.25 10.00% 0.70% ii. Explain why XYZ's required return is higher than the return from a market portfolio (SP500)

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