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The Stock of Alpha Company Has an Expected Return of 18

question 85

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The stock of Alpha Company has an expected return of 18% and a beta of 1.5,and Gamma Company stock has an expected return of 15.6% and a beta of 1.2.Assume the CAPM holds.What's the risk-free rate?


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Pre-conventional Level

A stage in moral development where an individual's ethical reasoning is primarily based on self-interest and the consequences of actions.

Perceptual Congruence

The degree to which people perceive things the same way.

Work Group

A collection of individuals who come together to achieve a particular task or project within an organization.

Mental Ability

An individual's cognitive capacity to learn, remember, solve problems, and understand complex ideas.

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