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King Farm Manufacturing Companys common stock has a beta of 0.61. If the risk- free rate is 3.44 percent, and the market retThanks so much for helping me out folks; Please show me the work, as I need to get this down!

Thanks again :)

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Answer #1
As per CAPM
expected return = risk-free rate + beta * (expected return on the market - risk-free rate)
Expected return% = 3.44 + 0.61 * (5.95 - 3.44)
Expected return% = 4.97
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