What is its risk-adjusted rate of return

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Reference no: EM131967771

LaForge will use the risk-adjusted rate of return to assist it in arriving at its current stock price (intrinsic value).

It has a beta coefficient of 1.2, the risk-free rate is 1%, and the market is expected to return 9%. What is its risk-adjusted rate of return (k)?

Reference no: EM131967771

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