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Investors expect the market rate of return this year to be 13.50%. The expected rate of return on a stock with a beta of 1.7 is currently 22.95%. If the market return this year turns out to be 11.20%, how would you revise your expectation of the rate of return on the stock?

User Ahmad Alfy
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Answer:

19.04%

Step-by-step explanation:

Please see attachment

Investors expect the market rate of return this year to be 13.50%. The expected rate-example-1
User Kim Stebel
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