What is lionels rate of return

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lionel tricycles has a beta of 0.88 an expected dividend growth rate f 4.00% per year. The t-bill rate is 4.00% and the t-bond rate is 5..25%. The annual return on the stock market during the past 4 years was 10.25%. Investors expect the average annual future retunr on the market to be 11.50%. Using the SML, what is lionels rate of return?

Reference no: EM13304876

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