Compute the expected rate of return for acer common stock

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Question 1: Compute the expected rate of return for Acer common stock, which has a 1.5 beta. The risk-free rate is 4.5% and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 10%.

Question 2: Why is the rate you computed the expected rate?

Reference no: EM132579932

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