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A manager believes his firm will earn a 16.30 percent return next year. His firm has a beta of 1.71, the expected return on the market is 13.60 percent, and the risk-free rate is 6.60 percent.

Compute the return the firm should earn given its level of risk.

Required return %

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92716217

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