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#5 The risk-free rate is 4.79% and the expected return on the market 9.25%. A stock with a B of 1.09 will have an expected re

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Answer #1
As per CAPM
expected return = risk-free rate + beta * (expected return on the market - risk-free rate)
Expected return% = 4.79 + 1.09 * (9.25 - 4.79)
Expected return% = 9.65
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