Invested in ford common stocks

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1. After 11 years of being invested in Ford’s common stocks, Roddy Richards earned 8.75% annual geometric average rate of return on his original investment of $10,000. How much money did he receive when he sold all his shares of Ford?

2. The expected return on the market portfolio is currently 8%. Xerox Corporation stockholders require a rate of return of 15.0%, and the stock has a beta of 2.1. According to CAPM, determine the risk-free rate.

Reference no: EM132033499

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