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The market price of a security is $52. Its expected rate ofreturn is 9%. The risk-free rat

The market price of a security is $52. Its expected rate ofreturn is 9%. The risk-free rat

The market price of a security is $52. Its expected rate ofreturn is 9%. The risk-free rate is 5%, and the market risk premiumis 7%. What will the market price of the security be if its betadoubles (and all other variables remain unchanged)? Assume thestock is expected to pay a constant dividend in perpetuity.

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Abhinav 30-Nov-2019

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