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(1) Suppose the equity premium is positive and the CAPM holds. What is the expected rate of return for a stock that has a beta
(1) Suppose the equity premium is positive and the CAPM holds. What is the expected rate of return for a stock that has a beta of 1, if the expected return on the market is 20%? A. 15% B. Less than 15%
C. More than 15%
D. 20%
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