The current risk-free rate of return in the economy is 6%.In addition,the market rate of return is currently 8.5%.
A.Given this information,what would be the expected return on common stock for a company with a systemic risk level (Beta) of 1.3? Show your calculations.
B.Describe systemic risk.

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The Answer of The current risk-free rate of return in the economy is 6%.In addition,the market rate of return is currently 8.5%.
A.Given this information,what would be the expected return on common stock for a company with a systemic risk level (Beta) of 1.3? Show your calculations.
B.Describe systemic risk.

The Current Risk-Free Rate of Return in the Economy Is