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Accounting
Tutor: None Selected Time limit: 1 Day

Beta 0.85
Expected Return on the Market 11.50%
Risk-Free Rate 3.40%
Expected Return on the Stock =
Aug 2nd, 2015

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Aug 2nd, 2015

RE = Beta (Rm-Rf)+Rf

hence RE = 0.85 (11.50 - 3.4) +3.4 = 10.29% (Answer)

Aug 3rd, 2015

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