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A financial analyst for the zzz corporation uses the

A financial analyst for the ZZZ Corporation uses the Security Market line to estimate the cost of equity, R_E. The analyst observes the current risk-free interest rate, R_f, is 3%. The analyst estimates that ZZZ has a beta of 2. If the analyst finds that R_Eis 13%, what does the analyst use as the value of [E(R_M) - R_f]?

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