Calculate the required rate of return on a stock

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Reference no: EM132045825

Using the security market line, What is the required rate of return (k) on a stock if the firm's beta coefficient is 0.8, the risk-free rate is 1.5 percent, and the return on the market is 8.5percent?

Your answer is in a whole number to 1 decimal place. For example, if you get .034, type 3.4, which means the required rate of return is 3.4%

Reference no: EM132045825

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