What is expected rate of return of company a common stock

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Problem 1: Company A's historical returns for the past three years are 6%, 15%, and 15%. Similarly, the market portfolio's returns were 10%, 10%, and 16%. Suppose the risk-free rate of return is 5% and that investors expect the market to return 10%. What is the expected rate of return of company A's common stock, computed with the CAPM?

Reference no: EM132765083

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