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Compute the expected rates of return

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Problem 1: Best Technologies has a beta of 1.5 and the market rate of return is 10% per year. If the risk-free rate is 5% per year, what is the expected rate of return on this stock? If the market rate of return increases or decreases by 2% (i.e.,12% or 8% respectively), compute the expected rates of return on both scenarios.

Reference no: EM132979482

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