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The market price of a security is $70. Its expected rate of return is 12%. The risk-free rate is 7%, and the market risk premium is 7%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)? Assume the stock is expected to pay a constant dividend in perpetuity.(Round your answer to 2 decimal places.)

Market price $

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Financial Management, Finance

Category:- Financial Management
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