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1.CAPM:A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the

1.CAPM:A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the expected rate of return of the stock?

= .05 + [1.20*(.12 - .05)]

Have I done the formula correctly? My end result is 13.4%

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