What would be the expected return on common stock

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The current risk-free rate of return in the economy is 6%. In addition, the market rate of return is currently 8.5%.

Problem A. Given this information, what would be the expected return on common stock for a company with a systemic risk level (Beta) of 1.3? Round your answer to two decimal places.

Problem B. Describe systemic risk.

Reference no: EM132936289

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