Question 10 (1 point) The rate of return on U.S. T-bills is 3.25% and the expected...

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Answer 1

Answer #1

risk free rate = 3.25%

Market rate of return = 9.50%

beta = 1.48

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

Expected return = 3.25% + [1.48 * (9.50% - 3.25%)

Expected return = 3.25% + 9.25%

Expected return = 12.50%

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Answer 2

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