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Assume that the risk-free rate is 8 percent, the required rate of return on the market (or an average-risk stock) is 13 percent, and the required rate of return on Acme Healthcare stock is 15 percent. What is the implied beta coefficient of the stock?

a. 1.5

b. 1.4

c. 1.2

d. 1.0

e. 0.8

Financial Management, Finance

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