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9. The risk-free rate and the expected market rate of return are 5.6% and 12.5%, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on a security with a beta of 1.25 is equal to

Respuesta :

Answer:

21.2%

Explanation:

CAPM = risk free rate +( beta x expected market return)

5.6% + (1.25 x 12.5%) = 21.2%