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Calculate the required rate of return for Mercury Inc., assuming that the current risk-free rate...

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Finance

Calculate the required rate of return for Mercury Inc., assuming that the current risk-free rate is equal to 8 percent and the return on the market is 12 percent. Mercury has a beta of 2.0, and its realized rate of return has averaged 15 percent over the last 5 years.

a. 15%

b. 16%

c. 17%

d. 18%

e. 20%

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