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2. A stock has a beta of 1.2, the expected return on the market is 15 percent, and the risk- free rate is 5 percent.

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2. A stock has a beta of 1.2, the expected return on the market is 15 percent, and the risk- free rate is 5 percent. What is the expected return on this stock? a. 10% O b. 17% c. 20% O d. 23 %

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