The current risk-free rate of return in the economy is 4%. In addition, the market rate of return is currently 9.5%.
A. Given this information, what would be the expected return on common stock for a company with a systemic risk level (Beta) of 1.2? 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 4%. In addition, the market rate of return is currently 9.5%.
A. Given this information, what would be the expected return on common stock for a company with a systemic risk level (Beta) of 1.2? Show your calculations.
B. Describe systemic risk.

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