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Problem:

Alpha stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is4.30%.

Required:

Question: What is the required rate of return on the market? (Hint: First find the market risk premium.) Answer

10.36%
10.62%
10.88%
11.15%
11.43%

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172502

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