Calculate the expected return for company

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Reference no: EM132029710

Expected Return:

a) Suppose the beta of Company A is 1.9, the risk-free rate is 2.6 percent, and the market risk premium is 5 percent. Calculate the expected return for Company A.

b) Suppose the beta of Company A is 1.25, the risk-free rate is 1.8 percent, and the return on the market is 8 percent. Calculate the expected return for Company A.

Reference no: EM132029710

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