2. If rep = 5%, ry=11%, and b = 1.3 for Stock X, what is ry, the

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2. If rep = 5%, ry=11%, and b = 1.3 for Stock X, what is ry, the required rate of return for Stock X? a. 18.7%
b.16.7% c.14.8% d. 12.8% e. 11.9% 3. Refer to Self-Test Problem 2. What would ry be if investors expected the
inflation rate to increase by 2 percentage points? a. 18.7% b.16.7% c.14.8% d. 12.8% e. 11.9% 4. Re… 

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