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7. Assume the following information about the market and JumpMasters' stock. JumpMasters' beta = 2, the risk-free rate is 7%, the market risk premium is

7. Assume the following information about the market and JumpMasters' stock. JumpMasters' beta = 2, the risk-free rate is 7%, the market risk premium is 10.0%. Using the SML, what is the expected return for JumpMasters' stock?

a. 18.50%

b. 27.00%

c. 13.50%

d. 7.50%

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