Question: Using the formula for the security market line (Formula 21-7), if the risk-free rate (RF) is 3%, the market rate of return (KM) is 7%,

Using the formula for the security market line (Formula 21-7), if the risk-free rate (RF) is 3%, the market rate of return (KM) is 7%, and the beta (bi) is .8, compute the anticipated return for stock i (Ki)

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