Use the following information for the CAPM. The market risk premium is 6%. The risk...
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Finance
Use the following information for the CAPM. The market risk premium is 6%. The risk free rate is 3%.
a) If Stock A has a beta of 1.5, find its required return.
b) If Stock B has a 16.2% required return, find its beta.
c) If Stock C has a beta of 0.8 and it is currently expected to produce a 10%, should you invest in this stock? Explain.
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