Ross Law received an inquiry for the following specifics. Stock C provided the following returns for the past four years: 8%,3%, -2% and 12%. Likewise, the market also provided the following returns for the past: 6%, -8%,-8% and 18%. Compute for the stock’s beta. If the required return on the market is 11% and the risk-free rate is 6%, what is the required return on Stock C, according to CAPM/SML? *
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