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32. What rate of return should an investor expect for a stock that has a beta of 1.25 when the market is expected to yield

32. What rate of return should an investor expect for a stock that has a beta of 1.25 when the market

is expected to yield 14% and treasury bills offer 6%?

A. 10.0%

B. 11.2%

C. 12.4%

D. 16.0%

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