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6. A stock's beta is estimated to be 1.3. The risk-free rate is 5 percent, and the market return is expected to be 9 percent.

6. A stock's beta is estimated to be 1.3. The risk-free rate is 5 percent, and the market return is expected to be 9 percent. The expected return on the stock based on the Capital Asset Pricing Model (CAPM) is 10.20%? a) True b) False Explanation: 1

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