Find required rate of return based on the CAPM

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Reference no: EM131983784

ABC Corporation's common stock has a market risk premium coefficient of .7. The size and book to market coefficients are 1.5 and .45, respectively. The expected values for the market risk premium, size factor and market to book factors are .10, .06, and .17, respectively. If the risk-free rate is 2%, find the expected rate of return for ABC's stock according to the Fama-French model. Find ABC's required rate of return based on the CAPM

Reference no: EM131983784

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