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QUESTION
Assume that Born-Again Manufacturing's common stock has a beta of 1.2, the one-year risk-free return is 1% and the expected return on the market...
Assume that Born-Again Manufacturing's common stock has a beta of 1.2, the one-year risk-free return is 1% and the expected return on the market portfolio for the next year is 8%. What would the Capital Asset Pricing Model predict the expected rate of return on Born-Again Manufacturing to be for the next year?
