Question: Use the beta (bi) from problem 13, and plug it into the formula for the security market line (Formula 177). Assume the risk-free rate (RF)

Use the beta (bi) from problem 13, and plug it into the formula for the security market line (Formula 17–7). Assume the risk-free rate (RF) is 7 percent and the market rate of return (KM) is 12.6 percent. What is the value of the anticipated rate of return (Ki)?

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