suppose that the risk-free rate is 7 and that the


Suppose that the risk-free rate is 7% and that the market risk premium is 7%.

What is the needed rate of return on a stock with a beta of 1.2?

What is the needed rate of return on a stock with a beta of 0.6?

 

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Financial Accounting: suppose that the risk-free rate is 7 and that the
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