Question: Solution: DATA Risk-free rate = 2.0% Market expected return = 13.0% Beta = 1.25 Rate of return = Compute an appropriate rate of return for

Solution:
DATA
Risk-free rate =		2.0%
Market expected return =		13.0%
Beta =		1.25

Rate of return =

Compute an appropriate rate of return for ABC Corporation common stock, which has a beta of 1.25.The risk -free rate is 2 percent, and the market portfolio has an expected return of 13 percent.

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