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1. The current risk-free rate of return in the economy is 2 %. In addition,...

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1. The current risk-free rate of return in the economy is 2 %. In addition, the market rate of return is currently 6%. Given that a company's expected retum on common stock is 12.5%, what is the company's systemic risk level (beta coefficient)? Show your calculations and describe the meaning of systemic risk (Hint: Review Chapter 5 PowerPoint notes on Slide #31 and Chapter 5 in Textbook on Page 317.) S

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