Estimate the firm-specific expected return

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Question - Assume the risk-free rate is 2%, beta is 2.00, and the market risk premium (MRP) is 7%. Estimate the firm-specific expected return (cost of equity capital) using the capital asset pricing model (CAPM).

A- 16%

B- 14%

C- 18%

D- 20%

Reference no: EM133030863

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