Question: The expected market return for the S&P 5 0 0 in 2 0 2 7 is 7 . 5 % . The risk free rate

The expected market return for the S&P 500 in 2027 is 7.5%. The risk free rate is 2.5% and beta is calculated to be .8 for General Dynamics. General Dynamics has a $21 Price/Earnings ratio and is expected to have an EPS of $3.05 in 2027. Using CAPM what is the required rate of return for General Dynamics?
The expected market return for the S&P 500 in 2027 is

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