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Required rate of return change

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Guchli Atunch has a beta of 1.2. If their current SML is expected to be kj = 0.10 + 0.12 Bj where kj is the required rate of return and Bj is the beta, what would the required rate of return change to if the inflation expectation goes down from 8% to 6%?

Reference no: EM131721784

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