Question: Using the CAPM, calculate the Expected Return for the Happy Valley Company: Alpha = 1.2%; Beta = 1.4 T-Bill Rate = 2.0%; S&P 500 average

Using the CAPM, calculate the Expected Return for the Happy Valley Company: Alpha = 1.2%; Beta = 1.4 T-Bill Rate = 2.0%; S&P 500 average return rate = 8.0%; WACC = 9%.

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