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Calculate the required rates of return

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Reference no: EM13531029

The estimated betas for AOL Time Warner (NYSE: AOL), J.P. Morgan Chase & Company (NYSE: JPM), and The Boeing Company (NYSE: BA) are 2.50, 1.50, and 0.80, respectively. The risk-free rate of return is 4.35 percent, and the market risk premium is 8.04 percent. calculate the required rates of return for these three stocks using the CAPM.

Reference no: EM13531029

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