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12. Capital Asset Pricing Model (LO1, CFA2) A certain stock has a beta of 1.3. If the risk-free rate of return is 3.2 percent and

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12. Capital Asset Pricing Model (LO1, CFA2) A certain stock has a beta of 1.3. If the risk-free rate of return is 3.2 percent and the market risk premium is 7.5 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of .75

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