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What is the required return on the common stock

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Reference no: EM131790167

Problem

A company you are researching has common stock with a beta of 1.35. Currently, Treasury bills yield 2.5%, and the market portfolio offers an expected return of 11.5%. What is the required return on this common stock?
10.93%
11.86%
21.43%
14.65%

Reference no: EM131790167

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