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Find required return on the common stock

Question: A company you are researching has common stock with a beta of 1.35. Currently, Treasury bills yield 2.5%, and the market portfolio offers an expected return of 11.5%. What is the required return on this common stock?

1. 10.93%

2. 11.86%

3. 21.43%

4. 14.65%

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Finance Basics: Find required return on the common stock

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