required return=risk-free rate +Beta*(market rate- risk-free rate)
0.14=0.04+1.3*(market rate-0.04)
(0.14-0.04)=1.3*(market rate-0.04)
market rate=(0.14-0.04)/1.3+0.04
=0.1169(Approx).
MacLeod Inc.'s stock has a beta of 1.3 and a required rate of return of 0.14....
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