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Calculate equity required return under risk-free rate

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Calculate equity required return under each of the following, assuming the CAPM holds:

a. The risk-free rate is 8 percent, beta is 1.5, and the market risk premium is 8.5 percent.

b. The risk-free rate is 4 percent, beta is 1.2, and the market risk premium is 8.5 percent.

Reference no: EM13871475

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