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 For the equity of Delaware East, Beta  = 1

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 For the equity of Delaware East, Beta  ₌ 1.25. If the expected return on the market is 15% and the risk-free rate is 5%, what is the expected return on the firm's equity?

A.  14.50%

B.  15.00%

C.  16.50%

D.  18.75%

 E.   17.50%