Use the beta (bi) from problem 13, and plug it into the formula for the security market

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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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Fundamentals of Investment Management

ISBN: 978-0078034626

10th edition

Authors: Geoffrey Hirt, Stanley Block

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