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#30 The risk-free rate is 4.01% and the expected return on the market 7.55%. A stock with a ß of 1.37 will have an expected r

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Answer #1

Expected return=risk free rate+beta*(market rate-risk free rate)

=4.01+1.37*(7.55-4.01)

which is equal to

=8.86%(Approx).

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