The current risk-free rate of return in the economy is 6.5%. In addition, the market rate of return is currently 10%.
A. Given that a company's expected return on common stock is 12.5% what is the company's systemic risk level (beta)? 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 6.5%. In addition, the market rate of return is currently 10%.
A. Given that a company's expected return on common stock is 12.5% what is the company's systemic risk level (beta)? Show your calculations.
B. Describe systemic risk.

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