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13.) Suppose the market follows a single index model, where the index has expected return of 0.1 and risk-free rate is 0.06. For a stock
13.)
Suppose the market follows a single index model, where the index has expected return of 0.1 and risk-free rate is 0.06. For a stock with beta of 3.5 and abnormal return of 0.01, what is the expected return?
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