The return on market portfolio is 12% and the risk-free is 6%. The beta coefficient is 1.3.Using the capital asset pricing model,
what is the cost of capital (or required rate of return)?
a. 12.8% b. 13.8% c. 14% d. 14.8%
If the beta coefficient increases to 1.6, the required rate of return will increase (decrease) by
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