Fairly compensated for the risk of the firm

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1. The risk free rate is 7%, the return in the market is 10%, and the beta is 1.30. What return must you receive to be satisfied that you are being fairly compensated for the risk of the firm?

2. What should a zero coupon bond maturing for $1000 in 9 years with a 7% market rate sell for?

Reference no: EM133119596

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