What is the expected return of purple enterprises

What is the expected return of purple enterprises

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The expected return on Blue Enterprises common shares is 18.5%. If the risk-free rate of return is 8% and the beta of Blue is 1.5, then what is the expected rate of return on Red Enterprises' common shares if red has a Beta 1.2? What is the expected return of Purple Enterprises if it has a beta equal to 1?

Reference no: EM131615704

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