What is investor required rate of return according to CAPM

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Reference no: EM131020020

An investor is interested in acquiring an appliance marker with an all equity transaction. The 10 years Treasury Note is at 3.12% The 3 month T-bills is currently at 0.4% The industry is 150% riskier than the general market while S&P index has been returning 7% annual return for the last 5 years. What is the investor required rate of return according to CAPM? Show work.

Reference no: EM131020020

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