Vrishank is thinking about investing in a new company. According to Yahoo, the company’s equity beta is 1.35. The curren

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answerhappygod
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Vrishank is thinking about investing in a new company. According to Yahoo, the company’s equity beta is 1.35. The curren

Post by answerhappygod »

Vrishank is thinking about investing in a new company. According
to Yahoo, the company’s equity beta is 1.35. The current risk-free
rate is 3% and the expected
return on the market is 8%. Assuming Vrishank is otherwise well
diversified, what is the new company’s expected return?
Don't use excel. Please show all work. Thanks
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