Question: Suppose r R F = 4 % , r M = 1 0 % , and b i = 1 . 4 . What is

Suppose
r
R
F
=
4
%
,
r
M
=
10
%
, and
b
i
=
1.4
.
What is
r
i
, the required rate of return on Stock i?

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