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Calculate the firm's expected return using the capital asset pricing model: Risk Free Rate: 3% Market Return: 7% Beta: 0.85 Standard Deviation: 4% Debt: Equity Ratio: 60%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 20P

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Calculate the firm's expected return using the capital asset
pricing model: Risk Free Rate: 3% Market Return: 7% Beta:
0.85 Standard Deviation: 4% Debt: Equity Ratio: 60%

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