Question: Problem 8-10 What is the required return on an investment with a beta of 1.0 if the risk-free rate is 2.7 percent and the return

Problem 8-10

What is the required return on an investment with a beta of 1.0 if the risk-free rate is 2.7 percent and the return on the market is 8.3 percent? Round your answer to two decimal places.

If the expected return on the investment is 10.9 percent, what should you do?

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